FDBusiness.com

Post Holdings to Acquire Weetabix For £1.4 Billion

 Breaking News
  • Fane Valley and ABP to Extend Joint Venture Arrangement Northern Ireland-based Fane Valley Co-op and ABP Food Group, the Irish and international meat processor, are to extend their joint venture relationship to include Linden Foods, the UK-based meat processing business of Fane Valley. The partnership will see Republic of Ireland-based ABP Food Group take a 50% stake in the Linden Foods company. An agreement in [...]...
  • Walsh Whiskey Distillery Agrees French Distribution Deal Walsh Whiskey Distillery, the independent Irish distillery, has signed an exclusive agreement with Dugas of Paris, for the distribution, throughout France, of its range of Writers’ Tears premium Irish whiskeys from the 1st September 2017. Established in 1980 by Francois-Xavier Dugas, the Dugas company is a renowned distributor of leading spirits with a particular emphasis on [...]...
  • IRI Launches New Growth Solutions Team to Unlock Opportunities for Manufacturers IRI, the global provider of big data and predictive analytics for FMCG manufacturers and retailers, has launched a new Growth Solutions team providing specialist assistance for manufacturers. The Growth Solutions team is being set up to support IRI’s clients across five specific focus areas: Media Strategy and Optimisation, Shopper Marketing Effectiveness, Price and Promotions, In-Store Activation [...]...
  • CROWN Food Europe Wins Gold Award in 29th DuPont Awards For Packaging Innovation CROWN Food Europe, a business unit of Crown Holdings, has been honored with a Gold Award in the 29th DuPont Awards for Packaging Innovation for its easy-open foil sealed can. The Peelfit™ can, which enhances convenience, lightweighting and product protection, was highlighted as a standout product in the ‘technological advancement’ and ‘responsible packaging’ categories of [...]...
  • Patak’s Paste Pots Unleash Indian Flavours Easily With Design by Hornall Anderson A new range of spice Paste Pots by Patak’s has launched into Morrison’s with contemporary packaging design by Hornall Anderson. To showcase the intense aromas and flavours generated by the paste pots and forge a sensory experience for the consumer, graphic squirls feature on the front of pack. Patak’s wanted to communicate the benefits of its [...]...
  • Ishida RVE Multihead Weighers Raise the Bar Ishida is launching a new series of mid-range multihead weighers for the high performance weighing of free-flowing and semi-sticky products for a large number of dry, fresh and frozen food applications. The new Ishida RVE range is available in a wide choice of models – including 10, 14, 16 and 20 head models – together with [...]...

Post Holdings to Acquire Weetabix For £1.4 Billion

Post Holdings to Acquire Weetabix For £1.4 Billion
April 19
14:53 2017

Post Holdings, a US-based consumer packaged goods holding company which is the third largest cereal company in the country, has agreed to acquire Weetabix from Shanghai-based state-owned enterprise Bright Food Group and an investment fund advised by Baring Private Equity Asia for £1.4 billion. UK-based Weetabix primarily produces ready-to-eat (RTE) cereal products spanning branded and private label. Founded in 1932, Weetabix holds the number two overall position in the UK RTE cereal category. Its portfolio includes the iconic Weetabix brand, which holds the number one brand position in the UK RTE cereal category, as well as Alpen (the number one muesli brand in the UK), Barbara’s, Weetos and Ready Brek.

Weetabix generated revenues of £409 million (US$513 million) and earnings of £120 million (US$148 million) for the year ended December 2016.

In North America, Weetabix operates a leading natural and organic RTE cereal and snacking platform in both branded and private label, led by the Barbara’s brand and the Puffins sub-brand and serving leading natural and specialty channel and conventional retailers.

Additionally, Weetabix has an established and extensive international presence, with operations in Africa through two joint ventures and a distribution export business to over 90 countries. Post has agreed in principle to establish a joint venture with Bright Food Group and an investment fund advised by Baring Private Equity Asia to manage the Weetabix China operations.

Post Holdings operates across four business segments – Post Consumer Brands (ready-to-eat cereal), Michael Foods Group (egg, potato, cheese and pasta), Active Nutrition (protein shakes, bars and powders), and Private Brands (nut butters, dried fruit and nuts and granola).

“We have long admired Weetabix as a leader in cereal and believe it will be a fantastic strategic fit within Post,” says Rob Vitale, president and chief executive of Post Holdings. “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. We are excited about the growth opportunities that this acquisition brings.”

The combination of Post and Weetabix creates a diversified international food company with substantial free cash flow generation, enabling Post to fund growth over the long-term, including international cross-selling opportunities through expansion of Post products in select international markets and further expansion of Weetabix and Barbara’s in North America.

At the closing of the transaction, Sally Abbott, Weetabix’s director of marketing, will become managing director of Weetabix UK and Ireland and report to Rob Vitale. Giles Turrell, Weetabix’s current chief executive, will assume the newly created role of chairman of Weetabix with responsibility for overseeing the integration of Weetabix into the Post portfolio. The other members of Weetabix’s existing management team will continue to lead the organisation.

Post expects Weetabix to contribute approximately £120 million of adjusted EBITDA on an annual basis before the realisation of cost synergies which Post management expects to be approximately £20 million annually by the third full fiscal year post-closing, resulting from benefits of scale, shared administrative services and infrastructure optimisation and rationalisation. The transaction is expected to be immediately accretive to Post’s adjusted EBITDA margins and free cash flow, excluding one-time transaction expenses.

The transaction is expected to be completed in the third calendar quarter of the 2017 subject to the satisfaction of limited closing conditions, including the expiration of waiting periods under US antitrust laws.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 25, 2017Summer Fancy Food Show
  • June 27, 2017Allergens – challenges facing the food industry
  • July 4, 2017BRC compliance – top non–conformances
  • July 21, 2017Snackex
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers

Advertisements