Post Holdings is set to acquire Golden Boy Foods and Dymatize Enterprises in two separate transactions, to further expand into the private label and active nutrition segments.
Golden Boy is a North American manufacturer of private label peanut and other nut butters, as well as dried fruit, baking and snacking nuts. It is a key supplier to the US and Canadian retail and foodservice channels. The company has three plants in Canada and two in the US.
Post has entered into an agreement with affiliates of Tricor Pacific Capital to pay C$320m for Golden Boy on a cash-free, debt-free basis.
The company plans to combine the Golden Boy business with Dakota Growers Pasta, a pending acquisition expected to be completed in January 2014. The acquisitions are expected to establish Post's private label platform, creating a business with annual net sales of more than $500m year ending 30 September 2013.
The combined business will be managed by Golden Boy CEO Richard Harris. Post expects that during 2014, Golden Boy will generate adjusted EBITDA of C$34m - C$36m.
Post also signed an agreement with affiliates of TA Associates and other owners to acquire privately owned Dymatize for $380m.
Dymatize produces and markets protein powders, bars and nutritional supplements under the Dymatize and Supreme Protein brands.
This acquisition complements Post's active nutrition focus by expanding its channel diversification. Following the deal, the business will continue to be led by current president and CEO Greg Venner.
For the nine months ended 30 September 2013, Dymatize reported net sales of $146m and adjusted EBITDA of $23m.
Subject to certain closing conditions, both the transactions are expected to close on or around 1 February 2014.
Golden Boy was represented by Lazard Middle Market, while Dymatize by BofA Merrill Lynch.
