Post Buying Hearthside Food Business For $158M
ST. LOUIS (AP) -- Cereal maker Post Holdings Inc. is buying the branded and private label cereal, granola and snacks business of Hearthside Food Solutions for $158 million, partly as a way to broaden its presence in the cereals category.
Post's existing cereal brands include Honey Bunches of Oats, Post Raisin Bran and Grape-Nuts.
The deal will give Post access to brands such as Golden Temple, Peace Cereal, Sweet Home Farm and Willamette Valley Granola Co. as well as the private label granola business of Hearthside.
The buyout includes a manufacturing plant and a finished goods warehouse in Eugene, Ore. The facilities will be leased by Post.
Post said Thursday that it plans to combine the Hearthside business with Attune Foods, a ready-to-eat cereal business Post purchased in December. The combined business will continue to have a presence in Eugene, Ore., and will also have offices in Phoenix and San Francisco.
The deal is expected to close by June.
Shares of Post Holdings, which is based in St. Louis, added 83 cents, or 1.8 percent, to $46.31 in afternoon trading after rising to an all-time high of $47.80 earlier.