Post completes acquisition of Premier Nutrition

Post Holdings, the parent of Post Foods and a manufacturer of ready-to-eat cereals, has completed the acquisition of Premier Nutrition (PNC), a producer of protein beverages, foods and nutritional supplements, in an $180m all-cash deal.

PNC is a marketer and distributor of protein beverages and foods under its Premier Protein brand and nutritional supplements under its Joint Juice brand.

The latest development comes after Post acquired the branded and private label cereal, granola and snacks business of Hearthside Food Solutions for $158m, earlier this year.

The transaction, which took effect from 1 September 2013, provides Post with a platform in the active nutrition and supplements businesses.

In August this year, Post Foods entered into a definitive agreement to acquire PNC for $180m.

At the time of signing the deal, Post chairman and CEO Bill Stiritz said, "We could not be more impressed with the terrific quality of the Premier team Dave has put together."

Post said the PNC business will be independently managed by the management team at the latter’s headquarters in Emeryville, California and its current CEO David Ritterbush will continue to lead the position.

The acquisition is expected to contribute approximately $130m to $140m to Post Foods’ net sales and between $17m and $20m to EBITDA, on a full-year basis.

The transaction was structured as a reverse subsidiary merger with and into PNC which allows Post to assume PNC’s net operating loss carry forwards and other tax benefits.

Post management team estimated it to be worth between $22 million to $26 million on a net value basis.

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Image: The acquisition provides Post with a platform in the active nutrition and supplements businesses. Photo: courtesy of PRNewsFoto/Post Holdings, Inc.