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Highlights

  • Post Holdings to acquire 8th Avenue Food & Provisions for approximately USD 880 million
  • Acquisition expected to add around USD 115 million in Adjusted EBITDA over next 12 months
  • Post’s adjusted net leverage ratio projected to rise to about 4.6x following transaction close

Post Holdings, Inc. (NYSE:POST), consumer-packaged goods holding company, announced that it has entered into a definitive agreement to acquire 8th Avenue Food & Provisions, Inc. (“8th Avenue”) for a net payment of approximately USD 880 million. The transaction includes extinguishing the outstanding net debt of 8th Avenue and acquiring all equity interests.

8th Avenue’s product portfolio includes branded and private label dry pasta, private label nut butters, granola, and fruit & nut items. The acquisition is planned to be completed on July 1, 2025, which coincides with the fourth quarter of Post’s fiscal year 2025, subject to customary closing conditions.

The purchase price includes approximately USD 111 million of finance leases. The remaining amount 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, as well as to acquire preferred and common equity interests not already owned by Post. The company intends to finance the acquisition with cash on hand and borrowings under its existing revolving credit facility.

Following the completion of the acquisition, 8th Avenue’s financial results will be incorporated into Post’s Consumer Brands segment. Post expects the acquired business to contribute approximately USD115 million in Adjusted EBITDA within the first twelve months after closing, before accounting for cost synergies. Post projects that cost synergies could reach an annual run rate of around $15 million by the end of fiscal year 2026.

The acquisition is anticipated to modestly increase Post’s leverage, with the company’s acquisition adjusted net leverage ratio expected to reach approximately 4.6 times following the transaction’s close.

Post management has updated its guidance for fiscal year 2025 Adjusted EBITDA, raising the expected range to USD 1,460 million to USD 1,500 million from a prior range of USD 1,430 million to USD 1,470 million, contingent on the acquisition closing as planned.

Post Holdings shares were trading 0.91% lower at USD 109.21 per share as of 3 June 2025. On a year-to-date basis, the share price has decreased by approximately 3.62%.