Key Takeaways:
- Post Holdings is selling the pasta portion of its 8th Avenue Food & Provisions division to Richardson Holdings just two months after acquiring Ronzoni for $880 million.
- The deal involves Post receiving $375 million in cash and Richardson assuming around $80 million in leaseback financial obligations. Post will retain the nut butters, fruit and nut products, and granola parts of 8th Avenue’s portfolio.
- The transaction, set to close in Post’s first fiscal quarter of 2026, includes three production facilities in Carrington, North Dakota; New Hope, Minnesota; and Winchester, Virginia. Approximately 500 8th Avenue employees will join Richardson post-sale.
Insights:
Post’s current food lineup features a range of products including peanut butter, cereal, potatoes, and eggs. The quick divestment of pasta suggests a strategic focus on other categories.
The remaining products from the 8th Avenue deal will be integrated into Post Consumer Brands, home to brands like Honey Bunches of Oats, Pebbles cereals, Peter Pan peanut butter, and Kibbles ‘n Bits pet food.
The sale of 8th Avenue follows a series of recent moves by Post, including the acquisition of Potato Products of Idaho and the closure of cereal manufacturing facilities in Ontario and Nevada due to market challenges.
Post has also announced changes in its leadership team, with Nicolas Catoggio set to become the new chief operating officer as Jeff Zadoks steps down in January. Catoggio currently leads Post Consumer Brands.