Post Holdings to acquire 8th Avenue for $880 million

ST. LOUIS - Post Holdings, Inc. (NYSE: POST), a prominent consumer packaged goods holding company, has entered into a definitive agreement to acquire 8th Avenue Food & Provisions, Inc. The deal, valued at approximately $880 million, includes the assumption of 8th Avenue’s outstanding net debt and will be funded through cash and existing credit facilities. With a healthy current ratio of 2.92 and moderate debt levels, Post appears well-positioned to execute this acquisition. InvestingPro subscribers can access 11 more key insights about Post’s financial position and growth prospects.

The transaction, expected to close on July 1, 2025, will see Post Holdings absorb 8th Avenue’s branded and private label offerings in dry pasta, nut butters, granola, and fruit & nut categories. This move is set to internalize the manufacturing of Post’s Peter Pan® peanut butter, introduce Post into the dry pasta market with the Ronzoni® brand, and expand its presence in the granola segment.

Rob Vitale, President and CEO of Post, expressed enthusiasm for the strategic expansion and the inclusion of approximately 1,580 8th Avenue employees into the Post family.

Financially, the acquisition is anticipated to modestly increase Post’s leverage, with an expected post-acquisition net leverage ratio of around 4.6x. The company currently generates $452.6 million in EBITDA, and the deal is projected to contribute $115 million in Adjusted EBITDA for the following twelve months, excluding potential cost synergies. For detailed analysis of Post’s financials and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro. Management forecasts an annual synergy run rate of approximately $15 million by the end of fiscal 2026.

In light of the pending acquisition, Post has revised its fiscal year 2025 Adjusted EBITDA guidance upwards to a range of $1,460-$1,500 million, from the previously stated $1,430-$1,470 million.

This financial outlook is based on non-GAAP measures, which Post uses alongside GAAP measures to evaluate performance and make business decisions. The company emphasizes that these non-GAAP measures may not be directly comparable to similar metrics reported by other companies. Based on InvestingPro’s Fair Value analysis, Post’s stock currently appears fairly valued, with analysts setting price targets ranging from $65 to $90 per share.

The acquisition is subject to customary closing conditions, and while forward-looking statements reflect Post’s expectations, they are subject to uncertainties and changes in circumstances. The company cautions against undue reliance on these statements due to potential variations from actual future results.

This report is based on a press release statement from Post Holdings, Inc.

In other recent news, BellRing Brands has been the subject of several analyst updates and stock evaluations. The company reported a significant sales increase, with Premier shakes seeing a 12% and 23.5% rise in 4-week and 12-week periods, respectively. Despite a 19% drop in Atkins sales, new products have contributed positively to brand sales. Mizuho Securities adjusted its price target for BellRing Brands to $75 while maintaining an Outperform rating, citing robust sales performance across various product lines. DA Davidson upgraded BellRing Brands from Neutral to Buy, setting a new price target of $85, and highlighted the potential for BellRing to be an attractive acquisition target. Meanwhile, TD Cowen lowered its price target to $78 but maintained a Buy rating, expressing confidence in the company’s growth potential despite recent inventory adjustments. Evercore ISI also adjusted its price target to $82, maintaining an Outperform rating, and anticipates continued organic sales growth. These recent developments reflect a mix of cautious optimism and strategic adjustments from analysts regarding BellRing Brands’ future performance.

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