TreeHouse Foods has simultaneously signed a definitive agreement and completed the sale of its ready-to-eat cereal business to Post Holdings for $85 million.
The deal sees Post acquire the entirety of the business, which includes two manufacturing facilities, in Lancaster, Ohio and Sparks, Nevada, with production capabilities spanning batch and extruded products.
The transaction also includes a research and development facility in Sauget, Illinois, as well as 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,” said 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.”
An agreement between the two companies for the sale of the ready-to-eat cereal business to Post was previously reached in 2019.
However, TreeHouse Foods and Post Holdings later agreed to terminate that deal following a complaint filed by the Federal Trade Commission.
© FoodBev Media Ltd 2022
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