Food Business News - February 10, 2015 - (Page 17)

Large MOM multiples Post Holdings is paying $1.15 billion for a cereal maker that earned $25 million in 2013 ST. LOUIS - The $1.15 billion to be paid by Post Holdings, Inc. for MOM Brands Co. equates to 140% of annual MOM sales, 46 times 2013 net income and 11 times 2013 adjusted EBITDA. February 10, 2015 Financial data on MOM Brands, a privately held company, and details about the acquisitions were included in a Form 424B5, a prospectus, submitted Jan. 26 to the Securities and Exchange Commission in connection with a secondary offering of Post Holdings shares. The prospectus was filed the same day Post said it had reached an agreement to acquire Minneapolis-based MOM Brands. MOM is a maker of ready-to-eat cereal under such brand names as Malt-OMeal, Golden Puffs, Cinnamon Toasters and others. "MOM Brands sells its products to grocery stores, big box retailers, and food service distributors across the United States, Puerto Rico, Canada, Mexico and the Caribbean," Post said in the filing. "In June of 2012, MOM Brands acquired the CoCo Wheats brand of chocolate flavored hot wheat cereal to add to its hot cereal category. Beginning in the third quarter of calendar year 2014, MOM Brands partnered with Weight Watchers to manufacture and distribute Weight Watchers licensed cereals, and MOM Brands also produces private label products for grocers such as Wegmans, Meijer and Food Lion." The dependence of MOM, and to a lesser degree Post, on a small number of retailers for a large proportion of the companies' business, creates risks for the pending transaction, Post said in the filing. WalMart Stores, Inc. accounts for more than a third of MOM Brands sales. "A limited number of the same customers represents a large percentage of our and MOM Brands' respective net sales," Post said in FOODBUSINESS NEWS ® 17

Table of Contents for the Digital Edition of Food Business News - February 10, 2015

Food Business News - February 10, 2015
Hershey continues move into snack categories
Renewed school food fight looming on the horizon
Beverage Business News - Colorful ways to quench a thirst
Table of Contents
Web Contents
Editorial - Oil and currency moves should be seen as threats
McCormick eyes ambitious growth in year ahead
Dunkin’ to debut cold blended beverage platform
Campbell Soup in the midst of reorganizing
The future of shopper marketing
JBS USA plans expansion at Utah beef plant
Large MOM multiples
More tough times ahead for McDonald’s
Inside Wendy’s menu strategy
Chipotle on fire
Diamond acquires stake in potato chip maker
Market Insight - More cattle but beef prices still rising
Health and Wellness - On the cutting edge of digestive health
Ingredient Innovations - Backing up satiety benefits
Company Profile - Tyson Foods flying high
New Food Products
Ingredient Market Trends - Soybean oil market pulled lower, then higher
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - February 10, 2015