Post Holdings weighing sale or IPO for private brand businesses

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Post Holdings weighing sale or IPO for private brand businesses

By Carolyn Schierhorn - 01/11/2018

St. Louis-headquartered Post Holdings, a consumer packaged goods holding company, said today that it plans to explore a range of strategic alternatives for its private brand businesses, which produce nut butter, dried fruit, pasta and granola products for retailers, distributors and manufacturers. Post also announced that it expects to close the acquisition of Bob Evans Farms on Jan. 12. 

Post intends to combine its private brands businesses under the leadership of Jim Dwyer, current president and CEO of Post’s Michael Foods Group. The company plans to explore a range of structural alternatives for its private brands businesses, including an initial public offering (IPO), a placement of private equity, a sale of the businesses or a strategic combination.

“We believe Jim Dwyer’s leadership will drive value creation in our strategic private brands businesses,” said Rob Vitale, Post’s president and CEO, in a statement. “We further believe the best structure to support Jim and his team is likely outside of Post’s full ownership, and we will aggressively explore creative alternatives involving direct capital and/or strategic partnerships.”

“Private brands will continue to be a strong growth driver across all trade channels and customers,” added Dwyer. “It’s exciting to create a business singularly focused on partnering with customers to profitably grow our respective businesses.”

Post expects to report the private brands businesses (inclusive of Golden Boy, Dakota Growers and Attune Foods) as one segment beginning in the second quarter of fiscal year 2018. These businesses, for the fiscal year ending Sept. 30, 2017, reported net sales of $791.2 million, net earnings of $43.4 million and adjusted EBITDA of $106.9 million. This financial information does not include standalone costs and corporate cost allocations, including interest expense allocations.