Benzinga - by Lekha Gupta, Benzinga Editor.
Post Holdings Inc (NYSE: POST) inked a deal to acquire Perfection Pet Foods LLC for $235 million.
Perfection Pet Foods manufactures and packages private-label and co-manufactured pet food and baked treat products.
The acquisition comprises two facilities in Visalia, California, thereby boosting Post's manufacturing capacity and offering an entry point into the private label and co-manufacturing pet food category.
The Perfection business will be integrated into Post's Consumer Brands segment after deal closure.
Post's portfolio includes many well-known brands, including Honey Bunches of Oats and Pebbles cereal, and Peter Pan peanut butter. The company expects Perfection to contribute around $25 million of Adjusted EBITDA (including stand-up costs) in the next 12 months following acquisition closure.
Additionally, the company expects the acquisition to result in a tax benefit, with a net present value of about $20 million and lower future capital expenditures for capacity expansion.
The acquisition is projected to close in the fourth quarter of 2023, subject to customary closing conditions.
As of June 30, cash and cash equivalents stood at $208.8 million.
Price Action: POST shares closed higher by 1.39% at $83.33 on Tuesday.
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