Investindustrial Agrees to $2.9 Billion Deal for TreeHouse (1)

European buyout firm Investindustrial has agreed to buy TreeHouse Foods Inc., the private-label food manufacturer, for $2.9 billion including debt.

Investindustrial will pay $22.50 a share in cash to take TreeHouse private, according to a statement Monday that confirmed a Bloomberg News report. That represents a 38% premium to TreeHouse’s closing price on Sept. 26, the last full trading day before market speculation about a transaction.

Shareholders will get a contingent value right that could get paid out if anything is recovered from ongoing litigation related to part of TreeHouse’s coffee business, the statement shows. The deal already ...