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Post Holdings announces sale of pasta business
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Monday, 01 September, 2025, 15 : 00 PM [IST]
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Missouri, USA
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Post Holdings Inc., announced that it has entered into a definitive agreement to sell the pasta business of 8th Avenue Food & Provisions Inc., to Richardson (US) Holdings Limited. In the transaction, it will pay $375 million in cash and assume approximately $80 million in leaseback financial liabilities. The transaction is expected to close in its first fiscal quarter of 2026, subject to customary closing conditions. It acquired 8th Avenue on July 1, 2025, and subsequent to this transaction will retain 8th Avenue's nut butters, fruit and nut products and granola businesses which are expected to be integrated into the Post Consumer Brands segment.
It expects that the nut butters, fruit and nut products and granola businesses will contribute approximately $45-50 million in Adjusted EBITDA in fiscal year 2026, before the realisation of cost synergies, which management expects to be at an annual run rate of approximately $15 million by the end of fiscal year 2026. This results in a synergised acquisition multiple for the remaining business that is below 7 times synergised Adjusted EBITDA, in line with its synergised acquisition multiple presented in conjunction with its 8th Avenue acquisition announcement on June 3, 2025.
Repurchases may be made from time to time in the open market, in private purchases, through forward, derivative, accelerated repurchase or automatic purchase transactions, or otherwise. Any shares repurchased would be held as treasury stock. The authorisation does not, however, obligate it to acquire any particular number of shares, and repurchases may be suspended or terminated at any time at its discretion.
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