OAK BROOK, ILL. — TreeHouse Foods, Inc. on Jan. 13 said it terminated its agreement to sell its ready-to-eat cereal business to St. Louis-based Post Holdings, Inc. The decision comes a little less than a month after the Federal Trade Commission filed an administrative complaint challenging the companies’ proposed $110 million transaction.
TreeHouse, which late last week reached agreement to sell two of its in-store bakery facilities to Rich Products Corp., said it will begin the process of remarketing the R.-T.-E. cereal business.
“After thoroughly evaluating our options and the potential outcomes, our board has determined that terminating the agreement with Post and immediately seeking another buyer for the business is the proper course forward,” said Steven T. Oakland, chief executive officer and president of TreeHouse Foods. “Unfortunately, the business risk, necessary resources and extent of time required to challenge the F.T.C.’s position was not in the best interest of our constituencies.”
Post first announced its intent to acquire the private label R.-T.-E. cereal business of TreeHouse Foods in May 2019. The R.-T.-E. cereal business generated $268 million in sales in 2018. It has a range of manufacturing capabilities and features two plants in Lancaster, Ohio, and Sparks, Nev. TreeHouse Foods acquired the R.-T.-E. cereal business from Conagra Brands as part of the Private Brands transaction in 2016.