TreeHouse Foods Inc., Oak Brook, Ill., has officially terminated its agreement to sell its ready-to-eat cereal business to Post Holdings. The decision comes after the Federal Trade Commission (FTC) filed against the sale, claiming the $110 million acquisition would give Post more than 60% share of the market and eliminate competition between the companies.
The FTC said St. Louis-based Post and TreeHouse were two of three significant manufacturers of private label ready-to-eat cereals in the U.S.
"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, president and CEO 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 first acquired the ready-to-eat cereal business from ConAgra Brands as part of the Private Brands transaction it made in 2016. The business operates two manufacturing plants in Lancaster, Ohio and Sparks, Nev.