Under the agreement, Post will acquire the entirety of TreeHouse Foods’ RTE cereal business based in St. Louis, Missouri, which includes two manufacturing plants in Lancaster, Ohio, and Sparks, Nevada and a research and development facility in Sauget, Illinois, as well as inventory valued at approximately $30m.
The deal will impact 500 Treehouse employees working across the companies various RTE facilities.
TreeHouse Foods, a manufacturer and distributor of private label packaged food and beverage products, said it will work closely with Post to ensure “a smooth transition for all stakeholders.”
“This transaction is another important step in our strategic journey to create value for our customers and our shareholders,” commented 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.”
Despite softening of growth across its cereal business, Post’s ready-to-eat cereal brands Fruity Pebbles, Honey Comb, and Grape Nuts posted strong year-over-year sales growth in the second quarter.