Sunset Brands has agreed to buy US Mills Inc, marketer of natural, organic and speciality ready-to-eat cereals, hot cereals, cookies and crackers.

“This is a very exciting acquisition for Sunset Brands, giving us entrée into the natural and organic category with five well respected and established brands,” said Todd Sanders, president and CEO of Sunset Brands.

In its last fiscal year, revenues of US Mills Inc. totalled approximately $15.8 million with over $2 million of positive operating cash flows, Sunset Brands said.

US Mills’ products include Uncle Sam Cereal, Erewhon, New Morning, Farina and Skinner’s Raisin Bran products.

“US Mills is a leader in the natural and organic foods category, a niche market with annual growth in excess of 20%,” he said. “We are extremely pleased with this acquisition as US Mills continues to outperform the market rate of growth.”