Post Holdings has signed a stock purchase agreement to acquire American Blanching Company. American Blanching is a manufacturer of peanut butter for national brands, private label retail and industrial markets and provides peanut blanching, granulation and roasting services for the commercial peanut industry.
American Blanching operates a peanut butter manufacturing facility located in Fitzgerald, Georgia. Post anticipates combining American Blanching with Golden Boy Foods, its existing peanut and other nut butter business.
"We are pleased with the progress at Golden Boy and we like the prospects for private label nut butters," said William P. Stiritz, Post's Chairman and CEO. "American Blanching will nicely complement Golden Boy and expand our presence in this growing category."
On a full year basis, American Blanching is expected to contribute approximately $135 million to net sales and approximately $14 million to $16 million of Adjusted EBITDA.
Terms of the agreement call for $128 million to be paid, on a cash-free, debt-free basis, subject to working capital and other adjustments. The acquisition is expected to be funded from cash on hand.
Post anticipates completing the acquisition in its first quarter of fiscal 2015, subject to customary closing conditions, including the expiration of waiting periods required under antitrust laws.
