Post Holdings has agreed to acquire Ohio-based sausage maker Bob Evans Farms for nearly $1.5bn to strengthen its position in refrigerated retail and food-service channels.
The acquisition, which will see the American packaged foods company pay $77 per each of the Bob Evans’ shares, results in a vastly complementary combination. It is expected to consolidate the brand portfolio of Post while widening choices for customers.
The transaction is also anticipated to boost Post’s footprint in higher growth segments of the packaged food market.
Post Holdings president and CEO Rob Vitale said: “We have enormous respect for Bob Evans’ success and are excited about the growth opportunities this combination will create.
“Combining with Bob Evans expands our portfolio of top brands and gives Post a leading position in the perimeter of the store.”
Established nearly 70 years ago, Bob Evans manufactures and distributes refrigerated potato, pork sausage, pasta and vegetable-based side dishes along with a line-up of refrigerated and frozen convenience food items. Bob Evans’ food products are sold under the Bob Evans, Pineland Farms, Owens and Country Creek brands.
Bob Evans also operates a foodservice business which sells a variety of products like sausage, sausage gravy, side dishes and breakfast sandwiches.
Bob Evans Farms president and CEO Mike Townsley said: “This transaction creates enhanced and certain value for our stockholders, while providing further resources and reach to deliver the Bob Evans experience to a broader audience of consumers and retailers.”
The boards of directors of both Post and Bob Evans have approved the transaction which is likely to be closed in the first quarter of 2018.
The completion will be subject to approval of Bob Evans’ stockholders, expiration of waiting periods in compliance with US antitrust laws among other customary closing conditions.
Post’s proposed acquisition of Bob Evans follows its $1.76bn acquisition of British cereal manufacturer Weetabix in July 2017.
