"Active Nutrition and private label are exciting categories with organic growth and consolidation opportunities We are fortunate to have identified two attractive businesses managed by talented teams," said William P. Stiritz, Post Chairman and CEO.
The news of the two unrelated acquisitions fits a climate of rapid acquisition at Post as the company moves to strengthen its suite of natural and active nutrition brands. In recent months Post paid $370 million for private label pasta maker Dakota Growers Pasta Co. in a deal set to close in January, $180 million to buy Joint Juice and Premier Protein maker PNC in August, $158 million for cereal and granola brands from Hearthside Food Solutions in June; and acquired natural and organic cereal maker Attune Foods in January.
Post Holdings (Post Foods) - which has its corporate HQ in St. Louis, MO and makes well-known cereal brands including Great Grains, Pebbles, Honey Bunches of Oats, and Grape-Nuts - is buying Dakota from Viterra, a subsidiary of Glencore Xstrata.
Private label nut butters
Golden Boy Foods is a privately North American manufacturer of private label peanut and other nut butters, as well as dried fruit, baking and snacking nuts. According to Post Golden Boy is a key supplier to the US and Canadian retail and foodservice channels and participates in the rapidly growing organic packaged foods category. Citing Mintel data, the company said the nut butter category is expected to remain strong with the US nut butter retail category projected to grow at a compound annual growth rate of 13% between 2014 and 2017. Based near Vancouver, Golden Boy has a flexible production and distribution network which includes three plants in Canada and two in the US.
Post has agreed to pay CAD $320 million for Golden Boy on a cash-free, debt-free basis, subject to a working capital adjustment. For the nine months ended September 30, 2013, Golden Boy had net sales of CAD $164 million and Adjusted EBITDA of CAD $23 million.
Post said it expects to combine the Golden Boy business with Dakota Growers Pasta Co.
Protein specialist
Post has also entered into an agreement to acquire privately owned Dymatize, which manufactures and markets premium protein powders, bars and nutritional supplements under the Dymatize and Supreme Protein brands. Dymatize's products participate in the rapidly growing sports nutrition supplement and nutrition bar categories. Citing Euromonitor data, Post says the global active nutrition category is expected to remain strong with the category projected to grow at a compound annual growth rate of 7% between 2014 and 2017. The Dymatize brand has been growing substantially in excess of the market and Post management expects the Dymatize brand to continue to outpace category growth. Dymatize's vertical integration and science-based model allows product customization for different end market consumers.