Dive Brief:
- Post Holdings is selling the pasta portion of its 8th Avenue Food & Provisions division to Richardson Holdings just two months after paying $880 million to buy out the Ronzoni owner.
- The food processor will pay Post $375 million in cash and assume approximately $80 million in leaseback financial liabilities. Post will retain the part of 8th Avenue's portfolio that includes nut butters, fruit and nut products and granola.
- The transaction, expected to close in Post's first fiscal quarter of 2026, includes three production facilities located in Carrington, North Dakota; New Hope, Minnesota; and Winchester, Virginia. Approximately 500 employees from 8th Avenue will join Richardson after the sale.
Dive Insight:
Post’s food portfolio is heavily immersed in peanut butter, cereal, potatoes and eggs, among other offerings, and the company’s decision to offload pasta so quickly indicates it had little interest in building a meaningful presence in that category.
Post said the remaining products added from the 8th Avenue transaction will be integrated into its Post Consumer Brands segment, which houses everything from Honey Bunches of Oats and Pebbles cereals to Peter Pan peanut butter and Kibbles ‘n Bits pet food.
The 8th Avenue deal continues what has been an active several months for Post.
The St. Louis-based company purchased Potato Products of Idaho, a manufacturer and packager of refrigerated and frozen potato products late last year. In April, Post announced it would close cereal manufacturing facilities in Cobourg, Ontario, and Sparks, Nevada, as the breakfast staple continues to struggle.
Changes have also come in its executive ranks, too. Last month, Post said Nicolas Catoggio will become its chief operating officer after Jeff Zadoks steps down from the role in January. Catoggio currently oversees Post Consumer Brands.
