TreeHouse Foods to Shed RTE Cereal Unit to Post Holdings

May 3, 2019

3 Min Read
TreeHouse Foods to Shed RTE Cereal Unit to Post Holdings
A TreeHouse Foods cereal production plant in Battle Creek, MI. Image courtesy of Google Maps

American food company TreeHouse Foods announced Thursday that it has signed a definitive agreement to sell its ready-to-eat (RTE) cereal business to St. Louis, MO-based Post Holdings. 

“This ready-to-eat cereal category represents nearly $9 billion in revenue at retail, and therefore, the business has a long runway for growth. We believe that the RTE business has a wonderful opportunity to flourish under Post’s ownership,” Steve Oakland, president and chief executive officer of TreeHouse said in a company press release. “Selling the ready-to-eat cereal business allows us to bring greater focus to the TreeHouse organization and represents another step on our portfolio optimization journey.”

TreeHouse did not disclose the financial terms of the transaction. The deal is expected to close in the third quarter of this year pending the completion of customary closing conditons. The RTE cereal business was purchased from ConAgra Brands by TreeHouse in 2016 during its acquisition of Private Brands. 

The company recently said that it plans to close its cereal plant in Battle Creek, MI by the end of this year. 

Changes are afoot at the company beyond the sale of the cereal business. A report Thursday by the Minneapolis Star-Tribune said the TreeHouse trail mix and nut production plant in Minneapolis, MN this year amid weak snack sales. 

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