Post Holdings Acquires Bob Evans Farms
Post Holdings and Bob Evans Farms have announced that they have entered into a definitive agreement in which Post will acquire Bob Evans for USD77 per share.
This will significantly strengthen Post’s portfolio of brands, expand choices for customers and increase Post’s presence in higher growth categories of the packaged food market.
Founded in 1948, Bob Evans is a leading producer and distributor of refrigerated potato, pasta and vegetable-based side dishes, pork sausage, and a variety of refrigerated and frozen convenience food items under the Bob Evans, Owens, Country Creek and Pineland Farms brands.
Bob Evans also has a growing foodservice business, representing approximately 35% of the volume.
The addition of Bob Evans’ highly complementary portfolio of brands and products will meaningfully enhance Post’s refrigerated side dish offering.
“We have enormous respect for Bob Evans’ success and are excited about the growth opportunities this combination will create. Combining with Bob Evans expands our portfolio of top brands and gives Post a leading position in the perimeter of the store. We look forward to welcoming the talented Bob Evans team to Post and working to create a successful future together,” said Rob Vitale, president and CEO of Post Holdings.
“We are pleased to join the Post family, combining our complementary portfolios to the benefit of all of our stakeholders. This transaction creates enhanced and certain value for our stockholders, while providing further resources and reach to deliver the Bob Evans experience to a broader audience of consumers and retailers. We are very proud of our 70 year history as a beloved brand and eager to begin this next chapter of growth,” said Mike Townsley, president and CEO of Bob Evans Farms.
Upon closing of the acquisition, Post expects to combine its existing refrigerated retail egg, potato and cheese business with Bob Evans, establishing a refrigerated retail business within Post, which will be led by Mike Townsley, Bob Evans’ current President and CEO. Jim Dwyer will continue in his current role as President and CEO of the Michael Foods Group, managing the commercial foodservice egg, potato and pasta businesses, which will include the Bob Evans foodservice business.
The equity value of the transaction is approximately USD1.5bn.