Post to buy Golden Boy Foods and Dymatize in separate deals

Post Holdings, the parent of Post Foods and a manufacturer of ready-to-eat cereals, has entered into separate agreements to purchase Golden Boy Foods and Dymatize Enterprises for approximately $680m.

With these acquisitions, Post is seeking to reinforce its presence in the private label, sport nutrition and nutrition-bar categories.

Post chairman and CEO William P Stiritz said, "Active nutrition and private label are exciting categories with organic growth and consolidation opportunities."

The company is purchasing Golden Boy from investors led by private-equity firm Tricor Pacific Capital for CAD$320m.

Golden Boy Foods produces private label peanut butter and other nut butters in addition to dried fruit, baking and snacking nuts, and operates three plants in Canada and two in the US.

It reported net sales of CAD$164m for the nine-month period that ended 30 September 2013.

Post plans to merge the acquired the business with its pending Dakota Growers Pasta acquisition, which is scheduled to close in January 2014.

The acquisitions would allow Post to strengthen its private label platform, while creating an entity with annual net sales of more than $500m.

Golden Boy CEO Richard Harris will lead the combined business unit.

Post agreed to take over Dymatize from investors led by private-equity firm TA Associates for $380m with additional consideration of up to $17.5m upon achieving certain profit targets in 2014.

Dymatize, which markets protein powders, bars and nutritional supplements, will continue to be led by its current president and CEO Greg Venner.

For the nine-month period that ended 30 September 2013, the company reported net sales of $146m.

Both of the transactions are expected to be completed on or around 1 February 2014, subject to customary closing conditions, including the expiration of waiting periods under the Hart-Scott-Rodino Act.

For the fiscal 2014, Post expects to generate adjusted EBITDA between CAD$34m and CAD$36m from Golden Boy and CAD$35m – CAD$38m from Dymatize.

---