Post to Sell 8th Ave Pasta Business, Authorizes $500m Buyback

Post Holdings agreed to sell the pasta business of 8th Avenue Food & Provisions to Richardson for $375m cash plus about $80m in lease liabilities, deal expected to close in 1Q.

• Deal includes three production facilities in North Dakota, Minnesota and Virginia and the Ronzoni pasta brand
• Post will retain 8th Avenue’s nut butters, fruit & nut products and granola businesses which it plans to integrate into Post Consumer Brands
• Post sees nut butters businesses contributing about $45m to $50m in FY adjusted Ebitda
• Post separately authorized a new $500 million share buyback
• BMO Capital Markets served as financial adviser ...