Post Holdings has formed 8th Avenue Food & Provisions as a subsidiary for its private brands foods business.
Post will receive US$875 million from Thomas H. Lee Partners, which will co-own the operation as part of the agreement, and Post Holdings will retain a 60% ownership. Jim Dwyer will serve as president and CEO of 8th Avenue. The transaction is expected to be completed in October.
Post, a consumer packaged goods holding company with 2017 revenue of $5.23 billion, said earlier this year it was exploring options for the private brands business, including a sale or spinning it off as a standalone company.