JANA Partners Confirms 7.5% Activist Stake in TREEHOUSE FOODS, Inc. (THS)

February 10, 2021 9:33 AM EST

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In a 13D filing on TREEHOUSE FOODS, Inc. (NYSE: THS), hedge fund JANA Partners disclosed a 7.5%, or 4,241,624 share, stake in the company. The firm did not hold shares at the end of the latest quarter ending Sept . 30, 2020.

From the filing;

The Reporting Persons acquired the Shares because they believe the Shares are undervalued and represent an attractive investment opportunity with the Issuer nearly three years into a comprehensive turnaround. JANA has had, and intends to continue to have, constructive discussions with the Issuer’s board of directors (the “Board”) and management regarding avenues to resolve the Issuer’s undervaluation and total stockholder return, including evaluating a sale of the Issuer, operations, capital allocation, corporate governance and compensation practices. The Reporting Persons expect to have additional discussions with the Issuer’s management and Board, stockholders and other interested parties relating to such matters.

On January 29, 2021, JANA and its affiliates delivered a notice to the Issuer of their intent to propose the three Nominees for election at the Issuer’s 2021 annual meeting of stockholders (including any adjournment or postponement thereof or any special meeting held in lieu thereof, the “Annual Meeting”). JANA believes that the Nominees possess the necessary expertise and experience to help the Board evaluate and address opportunities for stockholder value creation.

The Reporting Persons may also take other steps to increase stockholder value as well as pursue other plans or proposals that relate to or would result in any of the matters set forth in subparagraphs (a)-(j) of Item 4 of Schedule 13D, excluding (i) acquiring a control stake in the Issuer’s Shares, or grouping with any other party or parties to do so, (ii) engaging in an extraordinary transaction, such as a merger, with the Issuer, or acquiring a material amount of the Issuer’s assets, or grouping with any other party or parties to do either, or (iii) seeking to exert negative control over the important corporate actions of the Issuer, or grouping with any other party or parties to do so, although the Reporting Persons may seek to influence such actions through customary means including presenting their views for consideration to the Issuer, stockholders and other interested parties, privately or publicly, and, if necessary, through the exercise of their stockholder rights including the right to propose new directors for the Board.

Depending on various factors including, without limitation, the Issuer’s financial position and strategic direction, the outcome of the discussions and actions referenced above, actions taken by the Board, price levels of the Shares, other investment opportunities available to the Reporting Persons, conditions in the securities market and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment position in the Issuer as they deem appropriate including, without limitation, purchasing additional Shares or selling some or all of their Shares, and/or engaging in short selling of or hedging or similar transactions with respect to the Shares.

For more notable holders of TREEHOUSE FOODS, Inc. stock click here. For more information on JANA Partners click here.

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