Post Holdings has signed a definitive agreement for Post to spend $1.2 billion to purchase leading dog and cat food brands, such as Rachael Ray Nutrish, Nature’s Recipe, 9Lives, Kibbles ‘n Bits, and Gravy Train, from The J.M. Smucker Co. Also included in the transaction are Smucker’s pet food manufacturing and distribution facilities in Bloomsburg, Pa., and manufacturing facilities in Meadville, Pa., and Lawrence, Kan.
The acquisition of an established, scaled position in the mainstream and entry premium sub-categories will provide Post with a strong entry point into the growing pet food category. The transaction is expected to be completed early in the second calendar quarter of this year.
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Upon closing of the acquisition, Post Holdings is planning to create a new pet food platform within Post Consumer Brands. Nicolas Catoggio will continue in his current role as president and chief executive officer of Post Consumer Brands, with expanded responsibilities, including the management of both the North American ready-to-eat cereal and peanut butter business, as well as the new pet food business.
“We expect this acquisition to continue our history of creating value with a buy and build approach to categories. These iconic brands are ideally suited to this strategy. Most importantly, I am delighted to welcome the over 1,000 talented people who will join us as Post colleagues,” says Rob Vitale, president and chief executive officer of Post.
Post management projects that the pet food business will contribute approximately $100 million of adjusted EBITDA in the 12 months following the close of the acquisition.
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