Post Holdings is to sell the pasta business of 8th Avenue Food & Provisions to Richardson International.
Canada-based agri-food group Richardson International will pay $375m in cash and take on roughly $80m in leaseback financial obligations.
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The deal, announced on Friday (29 August), came two months after Post Holdings acquired the shares in 8th Avenue Food & Provisions that it did not already own for $880m.
US manufacturer 8th Avenue Food & Provisions makes branded and private-label pasta, as well as private-label nut butters and granola.
The transaction covers three production sites located in Carrington, North Dakota; New Hope, Minnesota; and Winchester, Virginia. Richardson International will also take on the Ronzoni pasta brand.
Approximately 500 employees from 8th Avenue Food & Provisions will also join Richardson International.
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By GlobalDataPost Holdings will keep 8th Avenue Food & Provisions’ nut butters, fruit and nut products and granola businesses.
In a statement, Richardson International said acquiring the pasta business allows the company to “strengthen its ability to connect its leading position in North American durum origination and milling to the production of finished pasta products”.
Darwin Sobkow, the president and CEO of Richardson International, that durum wheat’s handling and milling is a “core strength of our business, and the opportunity to extend our reach into pasta builds directly on that foundation”.
Post Holdings projects the retained businesses will generate an adjusted EBITDA contribution of approximately $45-50m in the fiscal year 2026, excluding the benefits of cost synergies.
The company expects these synergies to reach an annual run rate of around $15m by the end of fiscal year 2026.
Post Holdings adjusted its fiscal year 2025 guidance for adjusted EBITDA upwards to a range of $1.5bn–$1.52bn from a previous range of $1.46bn–$1.5bn, factoring in a partial-year contribution from 8th Avenue.
For the third fiscal quarter ending 30 June, Post Holdings reported net sales of $1.98bn, reflecting a 1.9% increase.
Operating profit rose by 15.5% to $234.6m compared to the same period in the previous year. Net earnings were reported at $108.8m, marking a 9% increase.
Diluted earnings per share increased to $1.79, up from $1.53 in the previous year.
