Breakfast Cereal Maker Post Expands Into Pet Category, Buys Perfection For $235M
Portfolio Pulse from Lekha Gupta
Post Holdings Inc (NYSE:POST) has agreed to acquire Perfection Pet Foods LLC for $235 million. The acquisition includes two facilities in Visalia, California, and will expand Post's manufacturing capacity and provide an entry into the private label and co-manufacturing pet food category. The deal is expected to close in Q4 2023 and contribute around $25 million of Adjusted EBITDA in the next 12 months. Post also anticipates a tax benefit of about $20 million and lower future capital expenditures for capacity expansion.
October 10, 2023 | 2:47 pm
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Post Holdings' acquisition of Perfection Pet Foods for $235 million will expand its manufacturing capacity and provide an entry into the pet food category. The deal is expected to contribute $25 million of Adjusted EBITDA in the next 12 months and result in a tax benefit of about $20 million.
The acquisition of Perfection Pet Foods will allow Post Holdings to diversify its product portfolio and enter the pet food category. This could potentially increase its revenue and profitability, especially considering the expected contribution of $25 million of Adjusted EBITDA in the next 12 months. The anticipated tax benefit and lower future capital expenditures for capacity expansion could also improve the company's financial position.
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