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September 24, 2015

Post Holdings to acquire Willamette Egg Farms

Post Holdings has entered an agreement to buy Willamette Egg Farms, a US producer and wholesale distributor of eggs, for US$90m.

Post Holdings has entered an agreement to buy Willamette Egg Farms, a US producer and wholesale distributor of eggs, for US$90m.

Willamette Egg has a "leading market share position" in the north-west of the US, Post said. The company owns two egg production facilities in Oregon and Washington, where it produces shell eggs, speciality shell eggs – including cage-free and organic eggs – and value-added products, such as liquid and hard cooked eggs.

Upon completion of the acquisition, Willamette Egg will be combined with Post's existing Michael Foods egg business.

"This transaction nicely complements our portfolio and fits well into Michael Foods," said Rob Vitale, Post's president and CEO. "Willamette Egg will further increase our leadership as the country's largest provider of cage-free egg products and contributes to additional geographic flock diversification."

On a full-year basis, Willamette Egg is expected to contribute approximately US$80m to net sales and approximately $15m of adjusted EBITDA to Post's results.

Post anticipates completing the acquisition early in its first quarter of fiscal 2016, subject to customary closing conditions. The acquisition will be funded from cash on hand.

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