Post Holdings Acquires Private Label Pet Food Supplier

Post Holdings, Inc., has acquired private label pet product supplier Perfection Pet Foods, LLC, in a deal value at $235 million. 

The deal includes two manufacturing facilities in Visalia, Calif., which will provide Post with additional manufacturing capacity to insource a portion of its current pet food business and an entry point into the private label and co-manufacturing pet food category. Perfection is a manufacturer and packager of private label and co-manufactured pet food and baked treat products. 

Upon closing of the acquisition, the financial results of Perfection are expected to be reported in the Post Consumer Brands segment.

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Inclusive of stand-up costs, Post management expects Perfection to contribute approximately $25 million of Adjusted EBITDA in the next 12 months following the close of the acquisition. Additionally, Post expects the acquisition to result in a tax benefit to Post with a net present value of approximately $20 million and reduce future capital expenditures previously earmarked for capacity expansion. 

The acquisition is expected to be completed late in the fourth calendar quarter of 2023, Post’s first quarter of fiscal year 2024, subject to customary closing conditions.

Perfection Pet was founded by Kevin Kruse, whose idea for the company began as a project needed to complete his college degree. Over the years, the company continued to expand. In 2012, its kibble plant opened and two years later its biscuit plan began operations. 

The company in 2018 expanded its plant to 360,000 square feet to house manufacturing, packaging, warehouse and office space. Three years later, the company’s Visalia distribution center opened.