Silver Point Capital Snaps Up Nearly 100% of TreeHouse Foods in Late‑Stage Merger Buy‑Back – A Hedge Fund’s High‑Speed Play on a Contingent Value Right

Silver Point Capital Buys into TreeHouse Foods Amid Merger‑Related Flurry

Silver Point Capital L.P. added 357,917 shares of TreeHouse Foods Inc. (THS) on Feb. 10, 2026, paying an average of $24.54 per share—essentially the same as the market price at $24.63. The purchase came at a time when the company is in the final stages of a merger with Industrial F&B Investments II and III, which has already forced the cancellation of all outstanding common shares and converted them into cash and a contingent value right. In other words, the transaction is effectively a “buy‑back” of the newly‑created shares, giving Silver Point a near‑100 % stake in the merged entity for a price that reflects the current market.

What the Deal Signals for Investors

For the average investor, the move signals that a sophisticated institutional investor believes the merger’s upside is worth the premium paid. Silver Point’s buy aligns with a broader pattern of large‑block purchases by hedge funds during late‑stage mergers, where they can secure a significant slice of the post‑merger equity at a price that is typically below the implied value of the cash and contingent rights. If the merger proceeds smoothly, the fund stands to benefit from the $22.50 cash per share and the contingent value right linked to potential litigation gains in the coffee business. Conversely, should the merger falter or the contingent right prove difficult to monetize, Silver Point’s position could be exposed to the negative earnings environment that currently defines THS.

Silver Point Capital’s Historical Trade Style

Silver Point has a track record of opportunistic, high‑volume trades in mid‑cap consumer staples. Their recent filing history shows a pattern of buying large blocks—often 1–2 million shares—in one day and liquidating them within 24–48 hours. For example, on Feb. 11 they sold 3.86 million shares of THS and held none by the end of the day, a strategy that suggests they are looking for short‑term price momentum rather than long‑term ownership. This behavior is typical of hedge funds that use the “buy‑back” mechanism to quickly acquire a controlling stake when a company is undergoing a structural change, such as a merger or spin‑off.

Implications for TreeHouse Foods’ Future

The acquisition is expected to bring a stronger balance sheet and more capital to TreeHouse Foods, potentially easing the negative P/E and improving profitability over the next fiscal year. However, the heavy reliance on the contingent value right introduces uncertainty—if the litigation outcome is unfavorable, the value of the shares could fall below the $22.50 cash component. Moreover, the current negative earnings signal suggests that the company may need to restructure or streamline operations post‑merger to return to profitability. Investors should monitor the merger’s closing timeline and the performance of the contingent right to gauge the real upside.

Key Takeaway for Traders and Long‑Term Holders

Silver Point’s acquisition is a classic case of a hedge fund using a merger‑related buy‑back to capture value at a discount to the cash component. For traders, it offers a short‑term play if the merger’s timing aligns with a spike in share price. For long‑term holders, it is a reminder that the merger could accelerate a turnaround, but only if the company can convert its negative earnings into sustainable growth. Watching the merger’s progress and any updates on the litigation‑related contingent value will be crucial for assessing the true value of the stake Silver Point now holds.