A deal between two big-name industry leaders has come to light as TreeHouse Foods announced that it has signed a definitive agreement and completed the sale of its ready-to-eat (RTE) cereal business to Post Holdings, Inc. The deal was completed on June 1, 2021 with a purchase price of $85 million, further fortifying TreeHouse Foods’ strategic growth plan.
"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. I want to express my gratitude to the approximately 500 RTE team members for their ongoing commitment as we work closely with Post to facilitate a smooth transition for all stakeholders."
As part of the terms of the transaction, Post will acquire the entirety of the St. Louis, Missouri-based RTE business. According to a press release, this includes two manufacturing plants in Lancaster, Ohio, and Sparks, Nevada, as well as a research and development facility in Sauget, Illinois.
Throughout the process of the divestment, William Blair served as financial advisor and Winston & Strawn as legal advisor to TreeHouse Foods.
Already making critical steps to bolster its growth strategy, what moves will come next from the bakery maven? Stick with Deli Market News as we go in search of the answers.