Baker McKenzie has represented U.S. food giant Post Holdings on its $1.8 billion purchase of British cereal maker Weetabix from China’s Bright Food Group and an investment fund owned by Baring Private Equity Asia, which tapped Ropes & Gray and Linklaters for advice.
London-headquartered Mills & Reeve is acting for Weetabix’s executive management team while Missouri-based Lewis Rice is serving as U.S. counsel for Post.
According to a Reuters report, Post said the acquistion will help its current brands – which include Honey Bunches of Oats and Grape-Nuts – to grow overseas, while expanding the distribution of Weetabix and its natural baked goods brand, Barbara's, in North America.
The sale comes just five years after private equity firm Lion Capital sold a 60 percent stake in Weetabix to state-owned Bright Food for 1.2 billion pounds.
Founded in 1932, Weetabix has struggled to grow significantly as cold cereals in Western markets face increasing competition from breakfast bars and Greek yogurt, and consumers become more concerned about the sugar content of their food, said Reuters.
Post has agreed in principle to set up a joint venture with Bright Food and Baring for Weetabix’s Chinese operations, which remain a minor part of the business. Though retail sales of cold cereals have nearly doubled over the past five years in China, it is still a relatively small category, as majority of locals prefer hot breakfasts, added Reuters.
Corporate partners Charles Whitefoord and Regine Corrado as well competition partner Bill Batchelor oversaw the transaction for Bakers.
Private equity partners Will Rosen and Peng Yu headed the Ropes team, together with antitrust partner Ruchit Patel. The Linklaters team was led by private equity partner Carlton Evans and senior consultant Richard Gu.
Corporate partner Anthony McGurk handled the deal for Mills & Reeve, while coporate partner Tom Zook and and transaction partner Alfred Ludwig took the lead for Lewis Rice.
