Post Holdings – a consumer packaged goods holding company – announced it has signed a definitive agreement to acquire 8th Avenue Food & Provisions. Post will be extinguishing the outstanding net debt of 8th Avenue and acquire all equity interests for a net payment of approximately $880 million. 8th Avenue’s categories include branded and private label dry pasta and private label nut butters, granola, and fruit & nut.
The deal internalizes the manufacturing of Post’s Peter Pan® peanut butter, represents Post’s entry into the dry pasta category with leading brand Ronzoni, and enables greater participation in the growing granola sub-category of ready-to-eat cereal. The acquisition is expected to be completed on July 1, 2025, Post’s fourth quarter of fiscal year 2025, subject to closing conditions.
Post will buy 8th Avenue for about $880 million, which includes the assumption of $111 million of finance leases. And the remainder of the purchase price will be paid in cash to retire existing debt, including 8th Avenue’s First Lien Term Loan, First Lien Incremental Term Loan, Second Lien Term Loan and Revolving Credit Facility, and to acquire the remaining preferred and common equity interests in 8th Avenue not currently owned by Post.
Post is expecting to fund the deal with a combination of cash on hand and through borrowings under its existing revolving credit facility. The acquisition is expected to modestly increase leverage; upon closing of the acquisition, Post’s acquisition-adjusted net leverage ratio is expected to be approximately 4.6x.
Upon the closing of the acquisition, the financial results of 8th Avenue will be reported in the Post Consumer Brands segment. And Post management expects 8th Avenue to contribute approximately $115 million of Adjusted EBITDA in the next twelve months following the close of the acquisition, before the realization of cost synergies, which Post management expects to be at an annual run rate of approximately $15 million by the end of fiscal year 2026. And Post management expects 8th Avenue to generate incremental free cash flow, complementing Post’s cash generation-focused business model and preserving Post’s capital allocation flexibility.
KEY QUOTE:
“With this acquisition, we further our strategy of tactical private label positioning alongside leading brands. I am pleased to welcome back the approximately 1,580 employees of 8th Avenue who will join us as Post colleagues.”
Rob Vitale, President and Chief Executive Officer of Post
