TreeHouse Foods Inc (NYSE: THS) shares surged 23% to $23.45 on Monday after the packaged food maker agreed to be taken private by European investment group Investindustrial for $22.50 per share in cash, or a total enterprise value of $2.9 billion.
The transaction is expected to close in the first quarter of 2026.
TreeHouse shareholders will also receive one contingent value right (CVR) per share, which entitles holders to a portion of any potential proceeds from ongoing litigation related to the company's coffee business.
In 2014, TreeHouse Foods filed an antitrust and unfair competition lawsuit against coffee company Keurig Green Mountain, with estimated damages ranging from $719 million to $1.5 billion.
The lawsuit accused Keurig Green Mountain of monopolizing alleged markets for single-serve coffee brewers and single-serve coffee pods.
Investindustrial has also invested in other packaged food companies, including US-based Winland Foods, in addition to Europe-based bakery ingredient suppliers CSM Ingredients and Italcanditi.
In a note to clients on Monday, Jeffries analysts wrote that given the uncertain food packaging environment, the go-private transaction might be the best option for Treehouse Foods.