(Bloomberg) -- Private equity firm Investindustrial is in exclusive talks to buy TreeHouse Foods Inc.’s meal-prep business, according to people familiar with the matter.

A deal may value the business at about $1.3 billion including debt, said one of the people, who asked to not be identified because the matter isn’t public. A final agreement hasn’t been reached and talks could fall through, the people said. 

Representatives for TreeHouse and the Italian buyout firm declined to comment.

The potential divestiture has been a long time coming. TreeHouse, based in Oak Brook, Illinois, said last year that it would launch a review, including exploring the sale of a significant portion of its meal-prep unit in order to focus on the higher-growth snacking and beverage business

The maker of private-label grocer items has been looking to boost shareholder value after underperforming the market, even as demand for packaged food jumped during the coronavirus pandemic. 

The company reached an agreement in April with Jana Partners that saw the activist investor get a seat on its board.

TreeHouse’s shares ended a 37% yearlong slide in May and have climbed 33% since then, giving the company a market value of about $2.3 billion. The shares rose 2.8% to $40.60 in New York trading Friday.

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