US-based cereal brands manufacturer Post Foods has agreed to acquire Premier Nutrition (PNC), a producer of protein beverages, foods and nutritional supplements, in an $180m all-cash deal.
Headquartered in Emeryville, California, PNC offers protein beverages and foods under its Premier Protein brand and nutritional supplements under its Joint Juice brand.
Post Foods stated that the acquisition provides the company with a platform in the growing active nutrition and supplements businesses.
The deal, which is subject to customary closing conditions and the receipt of necessary third party consents, is expected to be completed by September this year.
Following the deal, PNC will be independently managed by its management team located in Emeryville, California and its current CEO David Ritterbush will continue in that role.
Post chairman and chief executive officer Bill Stiritz said: "We could not be more impressed with the terrific quality of the Premier team Dave has put together."
Post Foods expects the transaction to contribute approximately $130m-$140m to net sales and approximately $17m-$20m to EBITDA on a full-year basis.
The transaction is structured as a reverse subsidiary merger with and into PNC which allows Post to assume PNC's net operating loss carryforwards and other tax benefits. Post management estimates it to be in the range of $22m-$26m on a net present value basis.
