Post terminates acquisition of TreeHouse ready to eat cereal businessChristian Fernsby ▼ | January 14, 2020
Consumer packaged goods holding company Post Holdings said it terminated the agreement to acquire TreeHouse Foods ready to eat or RTE cereal business.
Acquisition TreeHouse ready to eat cereal
Topics: Post acquisition terminates TreeHouse
According to the FTC, the acquisition would give Post more than a 60 percent share of an already highly concentrated market and eliminate the "vigorous competition" between Post and TreeHouse to serve retailers across the country.
Separately, TreeHouse Foods said it mutually agreed with Post to terminate the deal and will now begin the process of re-marketing the business for sale. The company is in the midst of a reorganization process.
The FTC welcomed the companies'decision to terminate the deal.
"Households across America have benefited from robust competition between Post and TreeHouse, and they will continue to do so now that this merger has been abandoned," said Ian Conner, Director of the FTC Bureau of Competition.
Separately, TreeHouse said it has agreed to sell two of its in-store bakery facilities to Rich Products Corp., a family-owned food company with more than 11,000 associates. Financial terms of the deal were not disclosed.
The two bakery facilities, located in Fridley, Minnesotta, and Lodi, California, manufacture breads, rolls and cakes for in-store retail bakeries and food-service customers. TreeHouse expects the transaction to close by April 10. ■