Post to acquire American Blanching for $128m

Post Holdings will acquire Georgia-based American Blanching for $128m, in another move to diversify itself since its spinoff from Ralcorp Holdings in 2012.

The latest acquisition will expand the company’s peanut-butter operations, with Post hoping to merge American Blanching with its peanut and other nut butter-focused Golden Boy Foods unit.

Commenting on the move, Post chairman and CEO William Stiritz said: "We are pleased with the progress at Golden Boy and we like the prospects for private label nut butters."

Post anticipates the deal to contribute about $135m to net sales annually.

Post has made several acquisitions recently. It acquired Michaels Foods in June this year for $2.45bn, expanding its breakfast offerings into eggs and dairy goods. The Golden Boy Foods unit itself was bought from affiliates of Tricor Pacific Capital and other shareholders for approximately $300m earlier this year.

A spate of other acquisitions has led it to declare a fiscal third-quarter loss of $35.1m, compared with a year-earlier profit of $3.4m, although revenue more than doubled to $633m, including $394.8m from acquisitions.

The company also lowered its fiscal-year outlook for adjusted earnings before interest, taxes, depreciation and amortization to between $260m and $270m, from its previous projection of between $300m and $320m.

The deal is expected to close in the fiscal first quarter.