Post Holdings, the Brentwood-based consumer packaged goods company, has announced an $875 million deal to form a new subsidiary for its private-label foods business.
Post is working with Thomas H. Lee Partners, a Boston-based private equity firm, to form the subsidiary, called 8th Avenue Food & Provisions.
Thomas H. Lee will pay $250 million to post, and 8th Avenue will assume $625 million of Post debt. Post will maintain a 60.5 percent stake in the new subsidiary.
Post had been exploring a sale or public offering of its private-label business, which makes food products that grocers sell under their own brand names.