Post adds to peanut and other nut butter portfolio
by Eric Schroeder
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|American Blanching makes peanut butter for national brands, private label retail and industrial markets.
ST. LOUIS — Post Holdings, Inc. is expanding its reach in the peanut and other nut butter business with the announcement it has agreed to buy American Blanching Co. for $128 million. Founded in 1980 and headquartered in Fitzgerald, Ga., American Blanching makes peanut butter for national brands, private label retail and industrial markets and provides peanut blanching, granulation and roasting services for the commercial peanut industry. The company operates a peanut butter manufacturing facility located in Fitzgerald.
Post said it plans to combine American Blanching with Golden Boy Foods, its existing peanut and other nut butter business. Post earlier this year acquired Golden Boy from affiliates of Tricor Pacific Capital, Inc. and other shareholders for approximately $300 million. Based in Burnaby, B.C., Golden Boy is a North American manufacturer of private label peanut and other nut butters, as well as dried fruit, baking and snacking nuts. Golden Boy is a key supplier to the U.S. and Canadian retail and food service channels and participates in the organic packaged foods category. Golden Boy operates three plants in Canada and two in the United States.
“We are pleased with the progress at Golden Boy, and we like the prospects for private label nut butters,” said William P. Stiritz, chairman and chief executive officer of Post. “American Blanching will nicely complement Golden Boy and expand our presence in this growing category.”
On a full-year basis, American Blanching is expected to contribute approximately $135 million to net sales and approximately $14 million to $16 million of adjusted EBITDA, Post said.
The company expects to complete the acquisition in its first quarter of fiscal 2015, subject to customary closing conditions, including the expiration of waiting periods required under antitrust laws.