New US owner for breakfast favourite

Breakfast cereal company Weetabix has been bought out of Chinese ownership following a £1.4 billion swoop by US consumer giant Post Holdings.

The household staple has been sold by the Bright Food Group and an investment fund advised by Baring Private Equity Asia after they struggled to push the brand into China.

Weetabix, which also owns Alpen, Weetos and Ready Brek, employs 1,800 staff and secured revenues of £409 million) and earnings of £120m for the year to the end of December 2016.

It has three manufacturing operations in the UK and produces all the wheat for its cereals within 50 miles of Burton Latimer, Northamptonshire.

Rob Vitale, the president and chief executive of Post, said the deal would bring exciting growth opportunities for the firm.

He said: “We have long admired Weetabix as a leader in cereal and believe it will be a fantastic strategic fit within Post.

“Combining together two category leaders continues our strategy of strengthening our portfolio in stable categories and diversifying into new markets, bringing much-loved brands to significantly more customers globally.”

St Louis-based Post is the third biggest cereal-maker in America, with 8,700 staff and brands such as Pebbles, Malt-O-Meal and Better Oats.

US and Asian businesses have ramped up their interest in buying British firms following the pound’s 17% plunge against the US dollar since the Brexit vote.

Bright Food Group, a state-owned firm based in Shanghai, bought a 60% stake in Weetabix in 2012, with the remaining 40% being held by Baring Private Equity Asia.

Weetabix is a firm breakfast favourite.