SJM - Post to buy 9Lives other pet food brands from Smucker in $1.2B deal
Post Holdings ( NYSE: POST ) said after-hours Wednesday it agreed to buy several pet food brands and related manufacturing and distribution plants in Pennsylvania and Kansas from J.M. Smucker ( NYSE: SJM ) for $1.2B.
The deal includes brands such as 9Lives, Kibbles 'n Bits and Rachael Ray Nutrish that generated $1.4B in combined sales in the year ended April 30.
Under the deal terms , Post ( POST ) will pay $700M in cash and issue to Smucker ( SJM ) ~5.39M common shares.
Post ( POST ) said it is acquiring "an established, scaled position in the mainstream and entry premium sub-categories," and expects to see "additional opportunities for future investments in the pet food category."
Smucker ( SJM ) expects the divestiture will be dilutive to full-year adjusted earnings by ~$0.45/share, reflecting the foregone profit related to the divested brand.
Post Holdings ( POST ) recently reported better than expected earnings and raised its FY 2023 EBITDA forecast, as its "margin recovery story [is] still intact," Jay Capital writes in an analysis newly published on Seeking Alpha .
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Post to buy 9Lives, other pet food brands from Smucker in $1.2B deal