Post, a packaged goods company focused on breakfast foods, has announced that it has agreed to acquire the private label ready-to-eat cereal business of TreeHouse Foods for an undisclosed sum.
Post described the acquired unit as a leading private label cereal manufacturer with wide-ranging cereal production capabilities across two facilities, serving a diverse set of customers across retail channels.
“The ready-to-eat cereal category represents nearly $9 billion in revenue at retail, and therefore, the business has a long runway for growth”, said Steve Oakland, CEO and president of TreeHouse Foods. “We believe that the RTE business has a wonderful opportunity to flourish under Post’s ownership”.
Mr Oakland added that selling the ready-to-eat cereal business allowed TreeHouse Foods to strengthen its focus, and represented another step in the firm’s strategy of portfolio optimization.
The transaction is expected to be completed in the third calendar quarter, subject to customary closing conditions, Post added.
Source: Post / TreeHouse Foods