US/SWITZ: Post to buy Nestle's PowerBar, Musashi brands
PowerBar and Musashi brands will join Premier Protein and Dymatize in Post portfolio
Speculation Nestle was looking to offload its PowerBar sports nutrition business first emerged in September, although the Swiss food giant refused to be drawn on the reports.
Post announced a deal to buy PowerBar and Musashi for an undisclosed sum today (3 February).
The Grape-Nuts cereal owner has broadened its business in the last 18 months through a series of deals, including the acquisitions of Premier Nutrition Corp. and protein bar firm Dymatize. Post said it would add PowerBar and Musashi to those two companies to form an "active nutrition group" within its business with an expected annual revenue of US$550m.
Citing data from Euromonitor, Post said the global active nutrition category is projected to grow at a compound annual growth rate of 7% between 2014 and 2017.
Nestle acquired PowerBar in 2000 for an undisclosed sum, although reports at the time said the company paid US$375m. The brand was founded by Canadian athlete Brian Maxwell in 1986. The PowerBar product portfolio included energy bars, sports drink mixes and supplements.
Five years later, Nestle acquired Australia-based Musashi. Both deals were part of a drive by the world's largest food maker to move into nutrition.
|Post Holdings Increases Commitment to Active Nutrition Category|
ST. LOUIS, Feb. 3, 2014 /PRNewswire/ -- Post Holdings, Inc. (NYSE:POST) today announced it has agreed to acquire the PowerBar and Musashi brands and related worldwide assets from Nestle S.A. ("Nestle").
This transaction furthers Post's efforts to expand upon its investment in the active nutrition category while continuing to execute against the strategy of transforming Post into a more diversified consumer goods company. Post anticipates combining this transaction with Post's current active nutrition portfolio to form a singular Active Nutrition Group with expected annualized revenue approaching $550 million. The acquired brands participate in the rapidly growing sports nutrition bar and sports nutrition supplement categories. The global active nutrition category is expected to remain strong with the category projected to grow at a compound annual growth rate of 7% between 2014 and 2017 (according to Euromonitor).
The combination of Premier Nutrition's Premier Protein and Joint Juice brands and Dymatize Enterprises'Dymatize and Supreme brands with the PowerBar and Musashi brands will afford Post a broad portfolio of brands addressing various segments of the category covering body building, endurance, life style and sports nutrition consumer interests and benefits. The combined portfolio will provide the Active Nutrition Groupaccess to all channels of sales and distribution as well as all leading product forms including bars, shakes and powders while expanding its presence worldwide.
David Ritterbush, President and CEO of Premier Nutrition, and Greg Venner, President and CEO of Dymatize will serve as co-CEO's of the Active Nutrition Group within Post, reporting to Terence E. Block, President and COO of Post.
"It's truly exciting to continue the transformation of Post and to increase the role active nutrition will play in that transformation. I'm confident that the talented associates joining Post from Nestle will make a powerful contribution towards this continued transformation," said William P. Stiritz, Post's Chairman and CEO.
Acquisition of PowerBar and Musashi
Capital has been invested in the business over the past seven years and manufacturing capacity exists in the U.S., Germany and Australia to meet projected demand for the next three to five years. Post management believes that PowerBar can continue to capitalize on the high brand recognition PowerBar enjoys with focus and innovation to drive this iconic brand.
The transaction is expected to be completed in Post's fiscal third quarter, subject to customary closing conditions. Post expects to fund the acquisition with cash on hand.
Material terms of the purchase agreement will be filed with the Securities and Exchange Commission on a Form 8-K within four business days.
Original source: Post Holdings
- Unilever is "working harder" in tough environment
- Nestle catering for an ageing global population
- What post-Brexit trade with the EU could look like
- What next for Nestle under new CEO Schneider?
- Hemp food sales in the US set for growth
- Job cuts imminent as General Mills restructures
- Kerry Foods sets its sights on C-sector
- Lindt organic sales miss market expectations
- Greencore pays GBP15m for Cranswick sandwich unit
- Unilever sees growth but spreads decline continues