Sales of the business were approximately $260 million in 2018. Financial terms of the sale were not disclosed.
The transaction is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under federal law. The transaction is expected to close in the third quarter of 2019.
“The ready-to-eat cereal category represents nearly $9 billion in revenue at retail, and therefore, the business has a long runway for growth. We believe that the RTE business has a wonderful opportunity to flourish under Post’s ownership,” said Steve Oakland, CEO and president of TreeHouse Foods. “Selling the ready-to-eat cereal business allows us to bring greater focus to the TreeHouse organization and represents another step on our portfolio optimization journey.”
TreeHouse acquired the ready-to-eat cereal business from ConAgra Brands as part of the Private Brands transaction in 2016. The business has three manufacturing plants—Lancaster, Ohio; Sparks, Nevada; and Battle Creek, Michigan. TreeHouse previously announced it is closing the Battle Creek plant, which is expected to be completed in the third quarter of 2019.
There are approximately 400 hourly and 100 salaried employees who will transition from TreeHouse Foods to Post Holdings. Both companies are committed to a smooth transition for employees, customers and consumers.
Post Holdings Inc., headquartered in St. Louis, Missouri, is a consumer packaged goods holding company operating in the center-of-the-store, refrigerated, foodservice, food ingredient and active nutrition food categories. Post Holdings makes products such as Honey Bunches of Oats, Pebbles, Great Grains and Malt-O-Meal bag cereal and brands such as Bob Evans, Simply Potatoes, All Whites, Better’n Eggs and Crystal Farms, Premier Protein, PowerBar and Dymatize.
TreeHouse Foods Inc. is a manufacturer and distributor of private label packaged foods and beverages in North America. The company operates more than 40 production facilities across the United States, Canada and Italy.