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Post Holdings, Inc. said it will buy private label peanut butter maker Golden Boy Foods Ltd. ("Golden Boy") and protein bar maker Dymatize Enterprises, LLC ("Dymatize") to expand into the private label and active nutrition categories.
"Active nutrition and private label are exciting categories with organic growth and consolidation opportunities. I am pleased that Post is continuing its expansion into these segments. We are fortunate to have identified two attractive businesses managed by talented teams," said William P. Stiritz, Post's chairman and CEO.
Golden Boy is a North American manufacturer of private label peanut and other nut butters, as well as dried fruit, baking and snacking nuts. The nut butter category is expected to remain strong with the U.S. nut butter retail category projected to grow at a compound annual growth rate of 13 percent between 2014 and 2017, according to Mintel.
Based near Vancouver, Golden Boy has a flexible production and distribution network which includes three plants in Canada and two in the U.S.
Post has agreed to acquire privately owned Golden Boy from affiliates of Tricor Pacific Capital, Inc. and other shareholders for CAD $320 million on a cash-free, debt-free basis, subject to a working capital adjustment.
Post expects to combine the Golden Boy business with Dakota Growers Pasta Company, a pending acquisition expected to close in January 2014. The combined Golden Boy and Dakota Growers business will be managed byRichard Harris, current CEO of Golden Boy. The acquisitions establish Post's private label platform, creating a business with annual net sales in excess of$500 million for the twelve months ended September 30, 2013.
The Golden Boy acquisition is anticipated to close on or around February 1, 2014, subject to customary closing conditions, including the receipt of approvals or the expiration of waiting periods under the Hart-Scott-Rodino Act and Canadian antitrust approval.
Post has also entered into an agreement to acquire privately owned Dymatize from affiliates of TA Associates and other owners. Dymatize manufactures and markets premium protein powders, bars and nutritional supplements under the Dymatize and Supreme Protein brands.
Dymatize's products participate in the rapidly growing sports nutrition supplement and nutrition bar 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 percent between 2014 and 2017, according to Euromonitor.
Post management believes the Dymatize acquisition complements its active nutrition focus by expanding its channel diversification. Post acquired Premier Nutrition Corporation in September 2013. Premier's distribution is primarily club and food/drug/mass, whereas Dymatize is primarily specialty and food/drug/mass.
Dymatize will continue to be led by current President and CEO, Greg Venner.
Post has agreed to pay $380 million for Dymatize on a cash-free, debt-free basis and subject to a working capital adjustment, with additional consideration up to $17.5 million contingent upon Dymatize achieving certain profit targets in calendar year 2014. The Dymatize transaction is expected to close on or around February 1, 2014.