Sign up USA
Proactive Investors - Run By Investors For Investors

Iconic cereal Weetabix spooned up by US giant Post Holdings

Post is the third largest cereal company in the US and will add Weetabix to its brands
Iconic cereal Weetabix spooned up by US giant Post Holdings
Weetabix is a classic cereal brand

Iconic cereal brand Weetabix has been sold to  US firm Post Holdings for US$1.76bn, it emerged on Tuesday.

Post is the third largest cereal company in the US and will add Weetabix to its brands, which includes Golden Crisp, Cocoa Pebbles and Great Grains.

Chinese group Bright  Food has owned Weetabix since 2012, when it took it over from Lion Capital.

A spokesman for Bright said the sale was part of its internationalisation strategy.

"Selling assets enables us to better expand. Going forward Bright will stick to our overseas push."

It comes despite previous reports that Primark owner and UK listed Associated British Foods plc (LON:ABF) was seeking a takeover.

China’s Bright Food put its 60% stake in the cereal brand up for sale in January and  ABF was said to be among the potential bidders.

Italy’s Barilla and Cereal Partners, a joint venture between Nestlé and General Mills, were also said to be eyeing up an acquisition of Weetabix.

Weetabix’s revenues of £346mln in 2015 were 2% lower than in 2012 and its pre-tax profit fell by 1% to £94.3mln.

The deal marks the latest in a raft of foreign takeovers of UK companies after the Brexit vote last June.

A weaker pound following the UK’s vote to leave the European Union has made investments more attractive to international investors.

Giles_55af4ddca6481.jpg


Register here to be notified of future PROAC Company articles
View full PROAC profile

Proactiveinvestors Timeline

Related Articles

White board with marketing ideas
March 13 2017
There was a bit of a wobble in the run-up to the Brexit vote and shortly after it, but the group's 'buy, build & grow' strategy is taking shape
E-mail
October 18 2016
Geographical expansion, product innovation and strategic partnerships continue to be well executed, said house broker finnCap
learning symbol on a keyboard
January 16 2017
The English language learning specialist is confident it can kick on in the coming year
Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use