Post Holdings eyes deal through special-purpose acquisition vehicle - Just Food
Join Our Newsletter - Get important industry news and analysis sent to your inbox – sign up to our e-Newsletter here

Post Holdings eyes deal through special-purpose acquisition vehicle

10 Feb 2021

The US-based food manufacturer is the latest business to turn to a special-purpose acquisition company, or SPAC, with an eye on buying a business.

Post Holdings eyes deal through special-purpose acquisition vehicle

Post Holdings, the US manufacturer behind brands including Grape-Nuts and Weetabix, is launching a special-purpose acquisition company to “partner” with another company in the CPG industry.

The company has set up a new subsidiary, Post Holdings Partnering Corp., which is looking for “a company in the consumer products industry that complements the experience and expertise of Post’s management team and is a business to which Post’s management believes it can add value”.

Post Holdings Partnering Corp. (PHPC) is looking to raise US$400m in a proposed public offering through the sale of units consisting of common stock, as well as warrants to purchase common stock. PHPC also expects to grant the underwriters an option to purchase up to an additional 15% of the units in the proposed offering.

PHPC will be managed by Post’s management team. Robert Vitale, Post’s president and CEO, will be the chief investment officer of PHPC. Jeff Zadoks, Post’s CFO, will also be PHPC’s chairman.

Post declined to provide further information on the special-purpose acquisition company, including on why the company has set up the unit and on whether the group was in talks with any CPG companies.

Last month, Stryve Foods LLC, a US-based protein snacks firm, announced it had formed a "definitive agreement for a business combination" with Nasdaq-listed Andina Acquisition Corp. III, a blank-check acquisition company set up in 2019.

In June last year, Utz Quality Foods, one of the largest producers of savoury snacks in the US, went public after a merger with a special-purpose acquisition company set up by a former Kraft Foods executive.

So far in 2021, Post has led an investment round in PeaTos, a Los Angeles-based business making better-for-you snacks from peas and bought an undisclosed stake in US plant-based meat firm Hungry Planet.