Consumer packaged goods firm Post Holdings has announced that it has completed the acquisition of select pet food brands from The J.M. Smucker Co.
The deal, announced in February of this year, includes several dog and cat food brands, such as Rachael Ray, Nutrish, Nature’s Recipe, 9Lives, Kibbles ‘n Bits, and Gravy Train.
In the full-year 2022, these brands generated net sales of $1.4 billion (€1.3 billion).
Post has also acquired manufacturing and distribution facilities in Bloomsburg, Pennsylvania, and manufacturing facilities in Meadville, Pennsylvania and Lawrence, Kansas.
The $1.2-billion (€1.1 billion) deal was funded with cash on hand, certain proceeds from the previously announced incremental term loan facility, and approximately 5.4 million new shares of Post common stock issued to The J.M. Smucker Co.
Rob Vitale, president and chief executive officer of Post said, "We expect this acquisition to continue our history of creating value with a buy-and-build approach to categories. These iconic brands are ideally suited to this strategy. Most importantly, I am delighted to welcome the over 1,000 talented people who will join us as Post colleagues."
Pet Food
The acquisition marks the entry of Post into the pet food category.
The company plans to create a new pet food platform within Post Consumer Brands, with Nicolas Catoggio continuing as the president and chief executive officer of Post Consumer Brands.
His responsibilities will be expanded to include management of both the North American ready-to-eat (RTE) cereal and peanut butter business and the new pet food business.
© 2023 European Supermarket Magazine – your source for the latest A-brands news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
