St. Louis, Mo.-based consumer packaged goods holding company, Post Holdings has acquired the entirety of the ready-to-eat cereal business of TreeHouse Foods for $85 million. The transaction includes two facilities located in Lancaster, Ohio and Sparks, Nev., which feature a wide range of production capabilities across batch and extruded products, a research and development facility located in Sauget, Ill., and inventory valued at approximately $30 million.
“This transaction is another important step in our strategic journey to create value for our customers and our shareholders,” says Steve Oakland, CEO and president of TreeHouse Foods. “Based on our thorough efforts to find alternative buyers for the business, we believe this transaction is not only in the best interest of its employees and customers, but also gives the business the opportunity to flourish as part of Post. I want to express my gratitude to the approximately 500 RTE team members for their ongoing commitment, as we work closely with Post to facilitate a smooth transition for all stakeholders.”
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Operating in the center-of-the-store, refrigerated, foodservice, food ingredient, and convenient nutrition food categories, Post Holdings’ businesses include Post Consumer Brands, Weetabix, Michael Foods, Bob Evans Farms, and BellRing Brands. Post Consumer Brands is a leader in the North American ready-to-eat cereal category and also markets Peter Pan nut butters.
The financial results of the acquired RTE cereal business are expected to be reported in the Post Consumer Brands segment and are expected to be modestly dilutive to Post’s Adjusted EBITDA for fiscal year 2021 and accretive in fiscal year 2022.