Post to Buy Hearthside Businesses for $158 Million
Post Holdings Inc. (POST), the maker of the Raisin Bran, Honeycomb and Alpha-Bits cereals, agreed to buy Hearthside Food Solution’s branded and private-label cereal, granola and snacks businesses for about $158 million in cash.
The acquisition will add $70 million to full-year sales and as much as $19 million to earnings before interest, taxes, depreciation and amortization, St. Louis-based Post said today in a statement. Post said the deal should be completed by June.
Chief Executive Officer William P. Stiritz is adding brands to Post’s portfolio of cereal labels after the company was spun off from Ralcorp Inc. last year. Post also will gain a 135,000 square-foot factory and a 30,000 square-foot warehouse as part of the deal.
Post rose 0.1 percent to $45.50 yesterday in New York. The shares gained 33 percent this year through yesterday, compared with a 14 percent gain for the Standard & Poor’s 500 Index.
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