TreeHouse Foods, Inc. announced that effective today, the Company mutually agreed with Post Holdings to terminate the previously-announced agreement to sell its ready-to-eat (RTE) cereal business to Post. TreeHouse also noted that it will begin the process of re-marketing the business for sale. These decisions follow the December 19, 2019 complaint filed by the Federal Trade Commission (FTC) opposing the sale of TreeHouse's RTE cereal business to Post Holdings.
"After thoroughly evaluating our options and the potential outcomes, our Board has determined that terminating the agreement with Post and immediately seeking another buyer for the business is the proper course forward," said Steve Oakland, Chief Executive Officer and President of TreeHouse Foods. "Unfortunately the business risk, necessary resources and extent of time required to challenge the FTC's position was not in the best interest of our constituencies."
TreeHouse acquired the RTE cereal business from ConAgra Brands as part of the Private Brands transaction in 2016. The business operates two manufacturing plants in Lancaster, Ohio and Sparks, Nev.