A syndicate of banks, led by Royal Bank of Canada, has launched a seven-year, $1.25 billion term loan to finance Investindustrial’s acquisition of TreeHouse Foods Inc. The debt package is directly tied to the private equity firm’s takeover of the US food and beverage producer.

TreeHouse is a key supplier of private-label products to Walmart Inc., making the deal significant for the retail giant’s supply chain. The loan’s structure reflects banks’ appetite for financing transactions linked to major consumer goods players, even amid shifting credit conditions.

Investors will watch how the acquisition integrates TreeHouse’s operations and whether cost synergies materialize. The deal’s success could influence future private equity appetite for food-sector assets, particularly those with entrenched retail relationships.