US Post Holdings to Acquire Weetabix in US$1.76 Billion Deal

601d830c-a35a-4803-b0a0-4c171539338farticleimage.jpg

18 Apr 2017 --- The UK’s iconic cereal brand Weetabix is reportedly being swallowed up by US Post Holdings in a £1.4 billion (US$1.7 million) deal. Chinese owners, The Bright Group, took a 60% share in Weetabix in May 2012 with Baring Private Equity Asia acquiring the remaining 40% from Lion Capital in 2015. 

Speculation has been mounting since the beginning of the year after reports in January claimed a potential four bidders – including Post Holdings, Associated British Food, Cereal Partners Worldwide and Italian pasta maker Barilla – were looking into buying Weetabix.

But now, one of the best-loved breakfast cereals in Britain, is to be sold with Reuters reporting that a spokesman for the Chinese conglomerate has confirmed the sale today (April 18). 

If the sale goes through, this would be the end of Chinese ownership. When The Bright Group first took over, the idea was to push the oval-shaped high-fiber breakfast cereal in potentially lucrative Asian markets, something which has not really been successful in recent years as consumers are not traditionally used to eating cold breakfast cereals with milk. 

Headquartered in Missouri, US, Post Holdings Inc., is a consumer packaged goods holding company active in the foodservice, ingredients, private label, refrigerated and nutrition categories and also makes other cereals popular in the US including Cocoa Pebbles and Golden Crisp. 

FoodIngredientsFirst reached out for comment from Weetabix and Post Holdings earlier today but neither was immediately available. 

Earlier this year, we also reported how Weetabix announced a £30 million (US$37 million) capital investment program across its British manufacturing sites to create new production capacity by 2018 to keep pace with increasing sales domestically and overseas. The investment came on the back of Weetabix’s UK market share for cereals and drinks rising from 15.3% to 16.4% in the past year.

Currently the UK cereal is manufactured in Northamptonshire and exported to more than 80 countries worldwide, while Weetabix for the US and Canadian markets is manufactured in Ontario. 

By Gaynor Selby

Related Articles

Business News

Glanbia Announces Dairy Ireland Sale, Q1 Total Group Revenue Up

26 Apr 2017 ---  26 April 2017 – Global nutrition group Glanbia released its first quarter results, with Total Group Revenue increasing 9.6% on a reported basis and 7.7% on a constant currency basis. The company has also signed binding transaction agreements with Glanbia Co-operative Society for the sale of a controlling stake in the Dairy Ireland segment and related associate businesses. Currently, Dairy Ireland is a wholly owned segment of Glanbia and comprises two business units, Glanbia Consumer Foods Ireland and Glanbia Agribusiness.

Business News

Novozymes Posts “Positive” Q1 Results with Sales and Earnings “On Track”

26 Apr 2017 --- Denmark-based biotechnology company Novozymes has reported overall positive Q1 results with a 3% organic sales growth mainly driven by food & beverages and bioenergy. The company reports that sales and earnings are on track with this “good start to 2017” which has also seen solid progress on Novozymes strategic priorities. 

Business News

Duas Rodas Invests US$7 Million in Chilean Plant

26 Apr 2017 --- Duas Rodas, a key international company in the manufacture of aromas and ingredients for the food and beverage industries is set to inaugurate new facilities for its factory in Chile. The investment of more than US$7 million is part of the strategy of consolidation and expansion of the Brazilian multinational in the Latin American market.

Business News

NIZO Partners on Center of Excellence for Product & Process Modeling

26 Apr 2017 --- At yesterday’s Advanced Process Modelling Forum Process Systems Enterprise (PSE), the Advanced Process Modelling company, and NIZO, the world’s leading food & nutrition contract research organization, announced the formation of the Center of Excellence (CoE) for Food Product and Process Modelling.

Business News

Nestlé to Cut 300 UK Jobs and Move Blue Riband to Poland

26 Apr 2017 --- Nestlé UK is informing employees of proposals to make some changes to the factory operations within its UK confectionery business. These proposals span four different sites: York, Fawdon, Halifax and Girvan and may result in a reduction of 298 roles, predominantly at York and Fawdon, through 2017 and 2018. The company expects that these would be achieved through voluntary redundancies.

More Articles