Consumer packaged goods firm Post Holdings has agreed to acquire the assets of Perfection Pet Foods for $235 million (€222.8 million).
Including stand-up costs, Post Holdings expects Perfection Pet Foods to contribute approximately $25 million (€23.7 million) of adjusted EBITDA in the 12 months following the closure of the acquisition.
Moreover, the deal is expected to yield a tax benefit to Post worth approximately $20 million (€18.9 million) and reduce future capital expenditures previously earmarked for capacity expansion.
The acquisition, subject to customary closing conditions, is expected to finalise in the fourth quarter of 2023.
Perfection manufactures private-label and co-manufactured pet food and baked treat products.
The acquisition includes two facilities in Visalia, California, which will provide Post with additional manufacturing capacity to insource a portion of its current pet food business.
It will also give it an entry point into the private-label and co-manufacturing pet food category.
Post the acquisition, the financial results of Perfection are likely to be reported in the Post Consumer Brands segment, the company noted.
In May of this year, Post Holdings completed the acquisition of select pet food brands from The J.M. Smucker Co, including Rachael Ray, Nutrish, Nature’s Recipe, 9Lives, Kibbles ‘n Bits, and Gravy Train.
It has also acquired manufacturing and distribution facilities in Bloomsburg, Pennsylvania, and manufacturing facilities in Meadville, Pennsylvania and Lawrence, Kansas.
At the time the said it plans to create a new pet food platform within Post Consumer Brands, with Nicolas Catoggio continuing as the president and chief executive officer of Post Consumer Brands.