Post Holdings acquires business from TreeHouse Foods

Post Holdings, parent company of egg products company Michael Foods, is adding to its portfolio with the acquisition of the ready-to-eat cereal business of TreeHouse Foods.

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onephoto, Bigstockphoto.com
onephoto, Bigstockphoto.com

Post Holdings, parent company of egg products company Michael Foods, is adding to its portfolio with the acquisition of the ready-to-eat (RTE) cereal business of TreeHouse Foods.

The acquisition, effective June 1, is valued at $85 million.

The acquisition includes two facilities located in Lancaster, Ohio, and Sparks, Nevada, which feature a wide range of production capabilities across batch and extruded products, a research and development facility located in Sauget, Illinois, as well as inventory valued at approximately $30 million.

The financial results of the acquired RTE cereal business are expected to be reported in the Post Consumer Brands segment and are expected to be modestly dilutive to Post’s Adjusted EBITDA for fiscal year 2021 and accretive in fiscal year 2022.

Post Holdings, headquartered in St. Louis, entered the egg industry when it acquired Michael Foods in 2014.

In recent years, the company, previously most known for its line of breakfast cereals, has grown through multiple other acquisitions.

Among those are the Almark Foods plants in Arizona and Tennessee, peanut butter company Peter Pan, Henningsen Foods, Bob Evans Farms, Weetabix Limited, National Pasteurized Eggs, Willamette Egg Farms. The assets obtained in the Almark Foods, Henningsen Foods, National Pasteurized Eggs and Willamette Egg Farms transactions became a part of Post Holdings’ Michael Foods operation.

A public company, Post Holdings is traded in the New York Stock Exchange under the ticker POST.

Michael Foods, according to the Egg Industry Top Companies Special Report, is the sixth largest egg producer in the United States, with a flock of 13.5 million hens at the conclusion of 2020.

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