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Post mulls options for private brand businesses
Posted on Friday, 12 January 2018 11:38
Post Holdings is flirting with the idea of combining its private brands businesses under the watchful eye of Jim Dwyer while exploring a range of structural alternatives in order to drive value.
The Missouri-based consumer packaged goods corporation is going ahead no holds barred with plans to aggressively look into options such as direct capital and partnerships.
Its review will include an initial public offering, a placement of private equity, a sale of the businesses, or a strategic combination.
Post noted it will begin to report labels such as Golden Boy, Dakota Growers and Attune Foods as one segment beginning the second quarter of fiscal 2018.
Combined, these private brand businesses generated net sales of USD 791.20 million and net profit of USD 43.40 million in the financial year ended 30th September 2017.
Together, they had adjusted earnings before interest, tax, depreciation and amortisation of USD 106.90 million for the 12 months.
Dwyer, currently president and chief executive of Post’s Michael Foods, said: “Private brands will continue to be a strong growth driver across all trade channels and customers.
“It’s exciting to create a business singularly focused on partnering with customers to profitably grow our respective businesses.”
At the moment, the private brands segment manufactures and distributes organic and conventional private label peanut butter and other nut butters, baking nuts, dried fruit and trail mixes.
The businesses within this category service grocery retailers and customers in the food ingredient and foodservice channels primarily in the US and Canada, and also in the European Union and the Middle East.
Furthermore, they co-produce peanut butter and other nut butters for national and private label retail and industrial markets, and also offer peanut blanching, granulation and roasting services for the commercial peanut industry.
However, Post does have private label ready-to-eat cereal housed in its consumer brand segment.
Along with looking into options for these business, the group is also in the process of buying Bob Evans Farms.
On closing, the group will form two new business units, namely a refrigerated retail arm and a foodservice division.
© Zephus Ltd