Post will acquire assets from Hearthside comprising the Golden Temple, Peace Cereal, Sweet Home Farm and Willamette Valley Granola Company brands, as well as its private label granola business.
The private label and the acquired brands are sold predominantly through the natural and health channels.
Post plans to combine the acquired business with its Attune Foods business, a branded ready-to-eat cereal business Post acquired in December 2012. The expanded Attune Foods will continue to be managed independently and will report to Terence E Block, president and chief operating officer of Post Holdings Inc.
The acquisition includes a 135,000 sq ft manufacturing facility capable of producing a variety of product and package formats, and a 30,000 sq ft finished goods warehouse. Both facilities will be leased by Post and are located in Eugene, Oregon, where the business will continue to be based.
In addition to its Eugene presence, the newly combined Attune business will have offices in Phoenix, Arizona and San Francisco, California.
On a full year basis, the transaction is expected to contribute approximately $70m to net sales and approximately $17-19m to EBITDA, inclusive of expected annualised synergies.
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