U.S. cereals giant Post Holdings on Tuesday became the latest global firm to take advantage of the weaker pound with a £1.4 billion deal to buy United Kingdom breakfast favourite Weetabix.
Post has agreed to take over the food company, famous for its breakfast cereal brands such as Weetabix, Alpen and Ready Brek, a person familiar with the negotiations told Bloomberg.
However, this is not a case of a British company being taken over by foreign investors: that already happened to Weetabix in 2004, when it was sold to a USA private equity firm, and again in 2012, Chinese firm Bright Foods bought it.
Cereal maker Post Holdings Inc. is close to a deal to buy United Kingdom peer Weetabix, a person with knowledge of the matter said.
Bright has owned Weetabix since 2012, when it took over from Lion Capital.
The British brand has made efforts to broaden its business amid declining sales in the breakfast cereal segment of the food market.
It is the third biggest cereal-maker in America, with brands such as Pebbles, Malt-O-Meal and Better Oats.
Post, which has its headquarters in St, Louis, said the deal will immediately add to its adjusted operating profit margins and its free cash flow, excluding one-time transaction expenses.
Post two years ago bought Minnesota-based MOM Brands, known for Malt-O-Meal, and relocated its consumer business to Lakeville.
"This is a part of our internationalisation strategy".
United Kingdom cereal brand Weetabix is to be snapped up by the USA company Post Holdings in a deal worth about $1.8bn (£1.4bn). "Going forward Bright will stick to our overseas push", a company spokesman said. Baring has owned the remaining stake since 2015. It posted net sales of $1.25 billion and a net loss of $4 million. Good financial exit for Bright Foods but showed that it wasn't the right strategic move for them.