Banks Launch Financing Package for Takeover of Walmart Supplier

Royal Bank of Canada and some other banks reportedly launched a loan tied to the takeover of TreeHouse Foods, which supplies Walmart private-label food and beverages, by Investindustrial.

The financing package is a seven-year, $1.25 billion term loan tied to the deal and includes $550 million of other secured debt, Bloomberg reported Wednesday (Jan. 21).

Leveraged buyout financings like these are expected to proliferate this year after banks underwrote $65 billion of mergers and acquisitions (M&A) loans in 2025, according to the report.

TreeHouse Foods and Investindustrial announced in November that they had agreed to an acquisition for a total enterprise value of $2.9 billion.

Steve Oakland, chairman, CEO and president of TreeHouse Foods, said at the time in a press release that the acquisition would position the firm for continued success.

“TreeHouse Foods has been executing a strategy to become a focused snacking and beverage private brand leader with depth in categories, attractive long-term prospects and an agile operating model,” Oakland said. “Our agreement with Investindustrial, a leading European investor with a strong track record in food manufacturing and related sectors, will provide shareholders with immediate cash value, at a substantial premium.”

Andrea C. Bonomi, chairman of the industrial advisory board of Investindustrial, said in the release that TreeHouse Foods will operate independently within the company’s portfolio and will bring the total number of Investindustrial portfolio company manufacturing plants to 85 and employees to 16,000.

“We are confident in the long-term growth opportunities in private brands and the categories where TreeHouse Foods operates, as well as the company’s ability to build on its strong foundation of leadership,” Bonomi said.

The companies said in the release that they expect the transaction to close in the first quarter of 2026 and that upon completion of the transaction, TreeHouse Foods will become a private company.

According to Wednesday’s Bloomberg article, Walmart accounted for 24% of TreeHouse Foods’ net sales in 2024.

It was reported in March that private-label brands experienced explosive growth in the grocery industry in 2024, surpassing national brands in both sales and consumer preference. Their rise was fueled by a change in consumer perceptions, economic pressure and creative retail strategies.