8th Avenue was formed in 2018 when Post consolidated its private-label businesses in a deal facilitated by private-equity firm Thomas H. Lee Partners.
In 2021, 8th Avenue acquired the Ronzoni pasta brand from Spain’s Ebro Foods, enhancing its product offering within the food manufacturing sector.
The manufacturer produces branded and private-label pasta, in addition to private-label nut butters and granola, thus diversifying its portfolio.
In a statement released yesterday (3 June), Post noted that the agreement includes extinguishing 8th Avenue’s existing net debt along with assuming $111 million in finance leases, streamlining operations in this food manufacturing deal.
Rob Vitale, president and CEO at Post, stated: “With this acquisition, we further our strategy of tactical private-label positioning alongside leading brands.”
This acquisition will also integrate approximately 1,580 employees into Post’s workforce. Furthermore, it will enhance Post’s capabilities in producing Peter Pan peanut butters.
The transaction is expected to finalize on 1 July. Post anticipates that the 8th Avenue acquisition will contribute approximately $115 million in adjusted EBITDA in the ensuing 12 months, excluding planned cost synergies.
These synergies are projected to achieve an annual run-rate of around $15 million by the end of Post’s 2026 fiscal year, underscoring the benefits of this food manufacturing acquisition.
Additionally, Post updated its fiscal year 2025 adjusted EBITDA guidance to a range of $1.46 billion to $1.5 billion, marking an increase from its previous forecast of $1.43 billion to $1.47 billion.
In May, Post, previously linked with a potential acquisition of US food peer Lamb Weston, indicated it has adjusted its approach to M&A.
Vitale acknowledged the existing trends among food manufacturers, stating that “uncertainty in the capital markets complicates M&A valuations.”
In April, the US food major announced the closure of two cereal manufacturing facilities in North America, attributing this decision to a “declining” market for ready-to-eat cereals.
