US-based packaged foods manufacturer TreeHouse Foods has concluded the sale of its ready-to-eat (RTE) cereal business to Post Holdings for a consideration of $85m.

Post Holdings acquired two manufacturing facilities in Lancaster, Ohio, and Sparks, Nevada, which are capable of producing batch and extruded products.

The company also assumed ownership of a research and development facility in Sauget, Illinois, and $30m worth of inventory.

TreeHouse Foods entered a definitive agreement to sell its RTE cereal business to Post Holdings in May 2019.

The RTE cereal business was acquired by TreeHouse from ConAgra Brands in 2016.

TreeHouse Foods president and CEO Steve Oakland said: “This transaction is another important step in our strategic journey to create value for our customers and our shareholders.

“based on our thorough efforts to find alternative buyers for the business, we believe this transaction is not only in the best interest of its employees and customers, but also gives the business the opportunity to flourish as part of Post.

“I want to express my gratitude to the approximately 500 RTE team members for their ongoing commitment, as we work closely with Post to facilitate a smooth transition for all stakeholders.”

For this transaction, William Blair served as financial adviser and Winston & Strawn as legal adviser for TreeHouse Foods.

In August 2019, TreeHouse Foods completed the $90m divestiture of its snack nuts and trail mix business to Atlas Holdings.

The Flagstone Foods division manufactures and distributes private label healthy snacks in North America and its product range includes nut, trail mix and dried fruits.