St. Louis-based Post Holdings has agreed to buy U.K. cereal maker Weetabix Food Co. in a $1.77 billion deal, the companies announced early Tuesday.
Weetabix, the second-largest cereal maker in the U.K., is owned by China’s Bright Food Group Co. and Baring Private Equity Asia.
The deal will add brands including Weetabix, Alpen and Barbara’s to a portfolio of cereals that features Honey Bunches of Oats and Grape-Nuts.
It will allow for expanded distribution of Post Holdings products in a number of international markets, while expanding Weetabix and Barbara’s in North America.
Post plans to fund the acquisition with cash on hand, borrowings from its existing revolving credit facility and possibly a new term loan facility. The deal is expected to close in the third quarter.
“We have long admired Weetabix as a leader in cereal and believe it will be a fantastic strategic fit within Post,” Rob Vitale, Post’s president and CEO, said in a statement. “Combining together two category leaders continues our strategy of strengthening our portfolio in stable categories and diversifying into new markets, bringing much-loved brands to significantly more customers globally. We are excited about the growth opportunities that this acquisition brings.”