The deal values Weetabix at £1.4 billion and comes on the back of the growth in Weetabix’s UK market share for cereals and drinks, rising from 15.3% to 16.4%, in the past year.
Post Holdings, headquartered in St. Louis, Missouri, US, is a consumer packaged goods holding company with a broad product portfolio across food including ready-to-eat cereal, value-added egg products, protein shakes, bars and powders, peanut and other nut butters, and granola.
Through its Post Consumer Brands business, Post Holdings is a major player in the North American ready-to-eat cereal category.
News of the acquisition was welcomed by Giles Turrell, chief executive, Weetabix Food Company, who said: “Today’s deal is great news for the team at Weetabix and all those who love our brands. The past five years have seen us increase our branded sales at home and overseas. Post is a leader within its markets and shares our commitment to providing great tasting nutritious products for the whole family. I’m confident they will help us open doors for continued expansion.”
Alongside Weetabix, the company also produces popular breakfast brands including Weetabix Minis, Alpen and Weetos.
In 2014, it launched a breakfast drinks business, Weetabix On The Go. This has grown rapidly, with sales of more than £15m in 2016.
Weetabix is headquartered in Burton Latimer, Northamptonshire. In the UK it has factories in Burton Latimer and Corby. It also has operations in North America, South Africa, Germany and Spain.
In recent years, Weetabix has seen strong growth in China which is now its third-largest market after the UK/Ire and North America.
Post Holdings has agreed in principle to establish a joint venture with previous owners the Bright Food Group and Barings Private Equity Asia to manage the Chinese operations.
Source: News – Packaging News