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SOURCE Post Holdings, Inc.
ST. LOUIS, Feb. 3, 2014 /PRNewswire/ -- Post Holdings, Inc. (NYSE:POST) today announced it has agreed to acquire the PowerBar and Musashi brands and related worldwide assets from Nestle S.A. ("Nestle").
This transaction furthers Post's efforts to expand upon its investment in the active nutrition category while continuing to execute against the strategy of transforming Post into a more diversified consumer goods company. Post anticipates combining this transaction with Post's current active nutrition portfolio to form a singular Active Nutrition Group with expected annualized revenue approaching $550 million. The acquired brands participate in the rapidly growing sports nutrition bar and sports nutrition supplement 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% between 2014 and 2017 (according to Euromonitor).
The combination of Premier Nutrition's Premier Protein and Joint Juice brands and Dymatize Enterprises' Dymatize and Supreme brands with the PowerBar and Musashi brands will afford Post a broad portfolio of brands addressing various segments of the category covering body building, endurance, life style and sports nutrition consumer interests and benefits. The combined portfolio will provide the Active Nutrition Group access to all channels of sales and distribution as well as all leading product forms including bars, shakes and powders while expanding its presence worldwide.
David Ritterbush, President and CEO of Premier Nutrition, and Greg Venner, President and CEO of Dymatize will serve as co-CEO's of the Active Nutrition Group within Post, reporting to Terence E. Block, President and COO of Post.
"It's truly exciting to continue the transformation of Post and to increase the role active nutrition will play in that transformation. I'm confident that the talented associates joining Post from Nestle will make a powerful contribution towards this continued transformation," said William P. Stiritz, Post's Chairman and CEO.
Acquisition of PowerBar and Musashi
The PowerBar and Musashi brands manufacture and market premium bars, powders and gels in geographies that represent more than 90% of global category sales (according to Euromonitor). PowerBar is an iconic brand in the active nutrition industry having been the very first energy bar created by athletes for athletes nearly thirty years ago. PowerBar has a very high awareness among bar users and has enjoyed high levels of trust among consumers for over twenty five years. Musashi is a leading sports nutrition brand in Australia and enjoys leading levels of awareness among its target audience, physically active males.
Capital has been invested in the business over the past seven years and manufacturing capacity exists in the U.S., Germany and Australia to meet projected demand for the next three to five years. Post management believes that PowerBar can continue to capitalize on the high brand recognition PowerBar enjoys with focus and innovation to drive this iconic brand.
The transaction is expected to be completed in Post's fiscal third quarter, subject to customary closing conditions. Post expects to fund the acquisition with cash on hand.
Material terms of the purchase agreement will be filed with the Securities and Exchange Commission on a Form 8-K within four business days.
The Company will host a conference call on Friday, February 7, 2014 at 9:00 a.m. Eastern Time. During the call, Terence E. Block, President and Chief Operating Officer, and Robert V. Vitale, Chief Financial Officer, will discuss the results for the first quarter of fiscal year 2014, fiscal 2014 guidance and the PowerBar and Musashi acquisition.
Interested parties may join the conference call by dialing (877) 540-0891 in the United States and (678) 408-4007 from outside the United States. The conference identification number is 33249552. Employees, snacks through the Attune®, Uncle Sam®, Erewhon®, Golden Temple™, Peace Cereal®, Sweet Home Farm®, and Willamette Valley Granola Company™ brands. Post's active nutrition platform aids consumers in adopting healthier lifestyles and includes the Dymatize®, Premier Protein®, Supreme Protein® and Joint Juice® brands. Post also manufactures private label cereal, granola, dry pasta, peanut butter and other nut butters, dried fruits and baking and snacking nuts, servicing the private label retail, foodservice and ingredient channels. Post is dedicated to health and wellness, offering consumers a variety of choices to meet their nutritional needs. For more information, visit www.postholdings.com.
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