Post Holdings to Acquire Perfection Pet Foods

ST. LOUIS, Oct. 10, 2023 (GLOBE NEWSWIRE) -- Post Holdings, Inc. (NYSE: Post) (“Post”), a consumer packaged goods holding company, announced today it has agreed to acquire the assets of Perfection Pet Foods, LLC (“Perfection”) for $235 million.  

Perfection is a leading manufacturer and packager of private label and co-manufactured pet food and baked treat products. The acquisition includes two manufacturing facilities in Visalia, California, 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. Upon closing of the acquisition, the financial results of Perfection are expected to be reported in the Post Consumer Brands segment.

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.

* For additional information regarding non-GAAP measures, such as Adjusted EBITDA, see the related explanations presented under “Use of Non-GAAP Measure” later in this release.

Additional Information

Lincoln International LLC served as financial advisor to Perfection.

Use of Non-GAAP Measure

In this release, Post discloses its expectations as to the expected Adjusted EBITDA contribution from Perfection. Post uses Adjusted EBITDA, a non-GAAP measure, in this release to supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDA represents earnings before interest, income taxes, depreciation and amortization and other adjustments. Adjusted EBITDA is not prepared in accordance with U.S. GAAP, as it excludes certain items, and may not be comparable to a similarly titled measure of other companies.