Post Holdings: Acquires RTE Cereal Business from TreeHouse Foods

St. Louis / MO. (pfh) Post Holdings Inc., a consumer packaged goods holding company, announced that it has acquired the ready-to-eat (RTE) cereal business of TreeHouse Foods for USD 85 million, effective immediately. The acquisition includes two facilities located in Lancaster, Ohio and Sparks, Nevada, which feature a wide range of production capabilities across batch and extruded products, a research and development facility located in Sauget, Illinois as well as inventory valued at approximately USD 30 million. The financial results of the acquired RTE cereal business are expected to be reported in the Post Consumer Brands segment and are expected to be modestly dilutive to Post’s Adjusted Ebitda for fiscal year 2021 and accretive in fiscal year 2022.

Use of Non-GAAP Measure

Post uses Adjusted Ebitda, a non-GAAP measure, in this press release to supplement its financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP). Adjusted Ebitda is not prepared in accordance with U.S. GAAP, as it excludes certain items, and may not be comparable to similarly-titled measures of other companies.

Management uses certain non-GAAP measures, including Adjusted Ebitda, as key metrics in the evaluation of underlying company and segment performance, in making financial, operating and planning decisions, and, in part, in the determination of cash bonuses for its executive officers and employees. Additionally, Post is required to comply with certain covenants and limitations that are based on variations of Ebitda in its financing documents. Management believes the use of non-GAAP measures, including Adjusted Ebitda, provides increased transparency and assists investors in understanding the underlying operating performance of Post and its segments and in the analysis of ongoing operating trends.