Post Holdings agrees to take over Weetabix for £1.4bn
Post Holdings has agreed to acquire Weetabix from China’s Bright Food Group and an investment fund advised by Baring Private Equity Asia for £1.4bn.
Post plans to fund the acquisition with a combination of cash on hand and through borrowings under its existing revolving credit facility.
UK-based packaged food company Weetabix is primarily engaged in the production of ready-to-eat (RTE) cereals under branded and private labels.
Its product offerings includes Alpen, Barbara’s, Weetos and Ready Brek.
In North America, the company offers natural and organic RTE cereal and snacking products under Barbara’s brand and the Puffins sub-brand.
Post president and CEO Rob Vitale said: “We have long admired Weetabix as a leader in cereal and believe it will be a fantastic strategic fit within Post.
“Combining together two category leaders continues our strategy of strengthening our portfolio in stable categories and diversifying into new markets, bringing much-loved brands to significantly more customers globally.”
Weetabix has also marked its presence in Africa through two joint ventures (JV) and established a distribution network spread across 90 countries.
Post has also agreed to establish a JV with Bright Food Group and an investment fund advised by Baring Private Equity Asia to manage Weetabix operations in China.
With this acquisition, Post anticipates to enhance the distribution of its products in certain international markets, as well as expand Weetabix and Barbara’s in North America.
The acquisition is expected to be completed by third calendar quarter after meeting all the closing conditions, including the expiration of waiting periods under US antitrust laws.