Post Holdings, Inc. POST has accomplished its acquisition of Perfection Pet Foods, LLC. This transaction was finalized on Dec 1, 2023, for $235 million. Perfection Pet Foods is a significant producer and packager of private-label and co-manufactured pet meals and baked deal with merchandise.
This acquisition contains two manufacturing services in Visalia, CA, which has enhanced POST’s manufacturing capability, enabling it to insource a portion of its present pet meals business. It additionally gives the corporate with an entry level into the non-public label and co-manufacturing pet meals class.
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Inside the Headlines
Post Holdings forecast that Perfection Pet Foods, inclusive of stand-up prices, will contribute $25 million to adjusted EBITDA in the course of the yr following the conclusion of the acquisition.
This strategic transfer aligns with Post Holdings’ wider aims within the pet meals trade. This was additionally demonstrated by the corporate’s earlier acquisition of assorted pet meals manufacturers and the private-label pet meals business from The J.M. Smucker Co. in April 2023. These acquisitions assist diversify the corporate’s product portfolio and create progress alternatives within the pet meals trade.
What’s More?
The Zacks Rank #3 (Hold) firm has undertaken varied acquisitions over time which have strengthened its product base and have been accretive to its efficiency. Some notable acquisitions previously few years embody Lacka Foods Limited (April 2022), which is a U.Ok.-based marketer of UFIT high-protein shakes.
In June 2021 and February 2021, the corporate acquired TreeHouse Foods’ RTE Cereal Business and Almark Foods, respectively. In the identical yr, it bought the Peter Pan peanut butter model and partnered with plant-based meat firm Hungry Planet.
Other key acquisitions embody Henningsen Foods (2020), Bob Evans (2018) and MOM Brands (2015). On the flip aspect, on Mar 10, 2022, Post Holdings concluded the distribution of 80.1% of its curiosity in BellRing Brands, Inc. to its shareholders. Apart from this, Post Holdings divested the Willamette Egg Farms business on Dec 1, 2021.
POST’s concentrate on optimizing its portfolio stays a driver. In this regard, the acquisition of Perfection Pet Foods will possible add to the corporate’s progress story. Shares of the corporate have gained 2.9% previously six months in opposition to the trade’s decline of 10.9%.
Stocks to Consider
We have highlighted three better-ranked shares, specifically MGP Ingredients, Inc. MGPI, Celsius Holdings CELH and The Kraft Heinz Company KHC.
MGP Ingredients produces and markets components and distillery merchandise to the packaged items trade. The firm at the moment has a Zacks Rank #2 (Buy). You can see the whole checklist of as we speak’s Zacks #1 Rank (Strong Buy) shares right here.
The Zacks Consensus Estimate for MGP Ingredients’ present financial-year gross sales and EPS suggests progress of 6% and 14.2%, respectively, from the year-ago reported figures. MGPI has a trailing four-quarter earnings shock of 16.2%, on common.
Celsius Holdings, which presents useful drinks and liquid dietary supplements, at the moment carries a Zacks Rank #2. CELH delivered an earnings shock of 81.6% within the third quarter of 2023.
The Zacks Consensus Estimate for Celsius Holdings’ present financial-year gross sales and earnings suggests progress of 98.5% and 184.1%, respectively, from the year-ago reported numbers.
The Kraft Heinz Company is without doubt one of the largest client packaged meals and beverage firms. The firm at the moment carries a Zacks Rank #2.
The Zacks Consensus Estimate for The Kraft Heinz Company’s present financial-year gross sales and earnings suggests progress of 1.1% and 6.5%, respectively, from the year-ago reported numbers. KHC has a trailing four-quarter earnings shock of 9.9%, on common.
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Post Holdings, Inc. (POST) : Free Stock Analysis Report
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