US cereal group Post Holdings has signed a US$158m deal to buy cereal, granola and snacks assets owned by Hearthside Food Solutions.
Post will acquire the Golden Temple, Peace Cereal, Sweet Home Farm and Willamette Valley Granola Company brands, as well as Hearthside’s private-label granola business. Hearthside is a portfolio company of private-equity firm Wind Point Partners.
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The acquisition includes a 135,000sq ft manufacturing facility and a 30,000sq ft finished goods warehouse. Both facilities, located in Oregon, will be leased by Post.
Chief executive Bill Stiritz said the acquisition expands Post’s participation in the high-growth segments of the cereal category and will expand its footprint.
“This acquisition will provide us with expanded presence with new retail partners and will be accretive to both top-line growth and earnings,” Stiritz said.
The company plans to combine the acquired assets with its Attune Foods business, a branded ready-to-eat cereal business Post acquired in December last year.
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By GlobalDataPost said the deal will add around $70m to its net sales and approximately $17-19m to EBITDA, inclusive of expected annualised synergies.
The transaction is expected to be completed by June and is subject to certain closing conditions.
