The CEO of Post Holdings, Rob Vitale, has said that he is ‘excited about the growth opportunities’ that the company’s acquisition of Weetabix provides.
Post agreed a deal with Bright Food and Baring Private Equity Asia – the majority and minority owners of Weetabix respectively – to acquire their stakes for a total of £1.4 billion.
Vitale added that the acquisition ‘combines together two category leaders [and] continues our strategy of strengthening our portfolio in stable categories and diversifying into new markets’.
“We have long admired Weetabix as a leader in cereal and believe it will be a fantastic strategic fit within Post,” he said.
Through the acquisition, Post will inherit some of the UK’s biggest heritage cereal brands including Weetabix – the second biggest cereal brand in the country – as well as Alpen, the UK’s biggest brand of cereal. Weetabix also owns the Barbara’s, Weetos and Ready Brek brands, and has ‘an established and extensive international presence’ that Post said would strengthen its position in territories like Africa.
Post management expects Weetabix to contribute approximately £120 million of adjusted pre-tax earnings annually, with cost synergies of roughly £20 million a year by the end of the third full year after completion.
Sally Abbott, Weetabix’s director of marketing will be promoted to Weetabix UK and Ireland managing director. She replaces Giles Turrell, who will take up the new role of Weetabix chairman with responsibility for overseeing the integration of Weetabix into the Post portfolio.
The transaction is expected to be completed by the third quarter of the year.
© FoodBev Media Ltd 2017