Cramer's 'Mad Money' Recap: Play in Treehouse

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If people looked at public leveraged-buyout stocks KKR and AP Alternative Assets, they might think it is not good to get into LBOs as both of these stocks are down, Jim Cramer told viewers of his "Mad Money" TV show Monday.

However, just because it's difficult to find a good LBO, doesn't mean people should give up, he said. In fact, Cramer has found one LBO firm that he believes is worth buying -- Treehouse Foods (THS Quote).

Even though Treehouse may look like a food company, it is a leveraged buyout play that is "an acquisition vehicle and a growth story," he said.

Not only was the company's last quarter "terrific," but also, with each new acquisition it makes, Treehouse brings in more earnings, Cramer continued.

What market players have with Treehouse is "a virtuous circle" because as the stock goes higher, it makes more deals as it trades stock for stock at a better rate, he explained.

The more acquisitions it makes, the more it grows and earns, and the higher its share price goes, Cramer said. And a higher share price translates into more acquisitions.

The time to buy Treehouse is now because the company is at its 52-week high, and this "high share price is the currency it uses to buy other companies," he said.