Post to Buy Protein-Drink Maker
Post to Buy Protein-Drink Maker
Cereal maker Post Holdings Inc. agreed to acquire Premier Nutrition Corp., a distributor of protein drinks and nutritional supplements, for about $180 million.
The move allows Brentwood-based Post to expand into the fast-growing nutrition and supplement arena. Premier’s products include Premier Protein drinks and bars and Joint Juice products.
The deal is expected to close in September. It is expected to add $130 million to $140 million to Post’s full-year revenue.
Post has been expanding through acquisitions lately. It acquired the cereal, granola and snacks business of Hearthside Food Solutions in May.
Citing the growth of the protein supplement segment — about 25 percent over the last year, according to Nielsen — Goldman Sachs said in a report Friday that the move was a “strategic positive.”
But other analysts disagreed, saying that the purchase moves Post away from its core business.
“We understand that Post was aggressively looking for acquisition opportunities, but this deal comes as a surprise,” said a report from SunTrust Robinson Humphrey. “While it increases the company’s footprint in the faster-growing natural/organic segment, it is a departure from its core, center-of-the-plate, conventional grocery business.”
Source: STL Today
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