Weetabix goes better with USA cereal than congee

Weetabix goes better with USA cereal than congee

Weetabix goes better with USA cereal than congee

USA firm Post Holdings is set to buy British cereal company Weetabix in a deal worth $1.8bn (£1.4bn), according to reports.

Weetabix, which also makes Alpen cereal, Weetos and Oatibix, was family owned until 2003.

Jonathan Buxton, head of retail and consumer at Cavendish Corporate Finance, said: "Importantly, the 1.8 billion USA dollar takeover of Weetabix will give Post both a significant United Kingdom presence and a greater share of the North American market".

Bright has owned Weetabix since 2012, when it took over from Lion Capital.

China's breakfast cereal market was worth US$933m in 2016, according to Euromonitor, with ready-to-eat cereals like Weetabix accounting for about one-quarter of that total.

Overseas acquisitions remain an important part of Bright Food's plan to become an "internationally influential, multinational company", the spokesman added.

Post two years ago bought Minnesota-based MOM Brands, known for Malt-O-Meal, and relocated its consumer business to Lakeville.

Representatives of Post and Weetabix didn't immediately respond to requests for comment. Selling assets enables us to better expand. Going forward Bright will stick to our overseas push.

Reuters reported in January that Post Holdings, the No.3 US cereal company, was among four interested parties vying for Weetabix, a business founded 85 years ago. Baring has owned the remaining stake since 2015.

Although Bright Food purchased the brand with a view to expanding into the Chinese market, it is on home soil the brand has seen its strongest growth. It posted net sales of $1.25 billion, a net loss of $4 million and adjusted EBITDA of $228 million.

Turrell said at the time Weetabix doubled its business to China previous year, and there was a growing demand for high quality, imported British foods.

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