Private Brand manufacturer TreeHouse Foods today announced it has simultaneously signed a definitive agreement and completed the sale of its ready-to-eat cereal business to Post Holdings, Inc. for a purchase price of $85 million.

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

As part of the terms of the transaction, Post will acquire the entirety of the RTE business based in St. Louis, Missouri, which includes two manufacturing plants in Lancaster, Ohio and Sparks, Nevada and a research and development facility in Sauget, Illinois.