Post Holdings has agreed to acquire the assets of Perfection Pet Foods for $235 million.
Perfection is a manufacturer and packager of private label and co-manufactured pet food and baked treat products.
The acquisition includes two facilities in Visalia, California, which will provide Post Holdings with additional manufacturing capacity to source a portion of its pet food business and an entry point into the private label and co-manufacturing category.
Upon closing of the acquisition, the financial results of Perfection are expected to be reported in the Post Consumer Brands segment.
Inclusive of stand-up costs, Post Holdings management expects Perfection to contribute about $25 million of adjusted earnings before interest, taxes, depreciation and amortization in the next 12 months, following the close of the acquisition.
In addition, Post expects the acquisition to result in a tax benefit to Post Holdings, with a net present value of about $20 million and reduce future capital expenditures previously earmarked for capacity expansion.
The acquisition is expected to be completed late in 2023, which is Post’s first quarter of fiscal year 2024, subject to customary closing conditions
About Post Holdings Inc.
Post Holdings, headquartered in St. Louis, is a consumer packaged goods holding company with businesses operating in center store, refrigerated, foodservice and food ingredient categories. It includes Post Consumer Brands, Weetabix, Michael Foods and Bob Evans Farms.
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