William Blair Advises TreeHouse Foods, Inc.

Thursday, May 9, 2019

TreeHouse Foods, Inc. has agreed to sell it's ready-to-eat cereal business to Post Holdings, Inc.

William Blair acted as the exclusive financial advisor to TreeHouse Foods, Inc. (NYSE: THS), in connection with the pending acquisition of its ready-to-eat (RTE) cereal business by Post Holdings, Inc. (NYSE: POST). The transaction was announced May 2, 2019 and is expected to close in Q3 2019. Financial terms were not disclosed.

Transaction Highlights

  • Sector and public company M&A expertise: THS was attracted to William Blair’s extensive sector expertise advising food and beverage companies as well as William Blair’s significant public company M&A advisory experience.
  • Trusted guidance: William Blair’s transaction team worked closely with THS leadership and Board of Directors through each step of the transaction, providing tailored strategic guidance, developing customized buyer-specific marketing materials and financial analyses, and coordinating an accelerated due diligence process.
  • Execution excellence led to premium valuation: William Blair constructed and managed a customized, narrow and competitive process focused on engaging the most logical strategic buyers, resulting in an exceptional outcome for THS and its shareholders.

About the Companies

The TreeHouse Foods RTE cereal business is a leading, private label RTE cereal manufacturer in North America. The business produces an extensive range of clean label products through industry-leading R&D and new product development processes. The RTE cereal business includes two, state-of-the-art manufacturing facilities that enable broad and flexible capabilities across batch and extruded cereal products. The business has developed long-standing relationships with a broad set of retail customers.

TreeHouse Foods, Inc. is a leading manufacturer and distributor of private label packaged foods and beverages in North America. TreeHouse has over 40 production facilities across the United States, Canada, and Italy, with a vision to be the undisputed solutions leader for custom brands for their customers. TreeHouse’s product portfolio includes shelf stable, refrigerated, frozen and fresh products, including baked goods (refrigerated and frozen dough, cereal, cookies, crackers, pretzels, and snack bars); beverages (broth, single serve hot beverages, creamers, and powdered drinks); meal solutions (dressings, hot cereal, macaroni and cheese, pasta, pickles, sauces, and side dishes); and healthy snacks (dried fruits and vegetables, nuts, and trail mix).

Post Holdings, Inc. is a consumer packaged goods holding company operating in the center-of-the-store, refrigerated, foodservice, food ingredient, and active nutrition food categories. Through its Post Consumer Brands business, Post is a leader in the North American RTE cereal category offering a broad portfolio including recognized brands such as Honey Bunches of Oats®, Pebbles™, Great Grains® and Malt-O-Meal® bag cereal. Post participates in the private brand food category through its investment with Thomas H. Lee Partners in 8th Avenue Food & Provisions, a leading, private brand centric, consumer products holding company.

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