Milling & Baking News Corporate Profiles - 2019 - 106

COMPANY OVERVIEW

Post Holdings, Inc.
Company has high hopes for future cereal acquisition, active nutrition i.p.o.
year ago and in the midst of integration activity of Michael Foods, Bob Evans and Post
Consumer Brands, Robert V. Vitale, president
and chief executive officer of Post Holdings, Inc., St.
Louis, said significant M.&A. was "a lower near-term
priority," adding that if a great opportunity developed, Post would respond. The private label readyto-eat cereal business of TreeHouse Foods, Inc. apparently was such an opportunity. Post on May 2
announced plans to acquire the TreeHouse unit.
In a May 3 conference call with analysts to discuss second-quarter financial results, Mr. Vitale said
the business "needs some T.L.C." in order to return
to the profitability level that Post believes is possible.
Even so, he said the acquisition makes sense for Post.
"One, we are already a participant in the private label category within cereal and are doing reasonably well
within it," he said. "Two, we think there are substantial
cost opportunities that can be derived to make us an
even more effective competitor. And, three, if you look at
the footprint of our combined manufacturing network, it
enables us to not only optimize costs, both manufacturing and transportation costs more effectively, but it also
allows us to avoid some capital expenditures that would
be needed simply to maintain the ongoing network."
The R.-T.-E. cereal business generated $268
million in sales in 2018. It has a range of manufacturing capabilities and features two plants in

Lancaster, Ohio, and Sparks, Nev. Upon closing,
Post said it will integrate the business into its
existing North American R.-T.-E. cereal business.
"So it gives us two very attractive factories, which
supplement our manufacturing base quite nicely," Mr.
Vitale said. "It gives us a distribution footprint that is
bigger and enables more optimization, and it is in a category in which we're already successfully competing."
However, Post and TreeHouse encountered a setback in the proposed acquisition in July.
The Federal Trade Commission (F.T.C.) indicated it
was reviewing the transaction in closer detail. Closing of the transaction, which was expected in the
third quarter of 2019, has been delayed.
Post and TreeHouse said they remain committed
to the transaction and will continue to work collaboratively with the F.T.C. to resolve the matter.
Another big move for Post during the year came
from its Active Nutrition business.
In September, the company said the business
will be named BellRing Brands, Inc. following

completion of the initial public offering in which
Post sold approximately 20% of its ownership. On
Oct. 21, the i.p.o. was issued at $14 per share.
BellRing Brands is a holding company operating in the global active nutrition category. Products
include ready-to-drink protein and other beverages,
protein powders, nutrition bars and other nutritional
supplements under the Premier Protein, Dymatize and
PowerBar brands distributed in club, food, drug, mass,
e-commerce, convenience and specialty retailers.
BellRing Brands plans to expand its presence in
international markets and pursue value-accretive acquisitions in convenient nutrition and more broadly in
the food and beverage industry, according to the filing.
Retail channel expansion and product innovation also are strategic priorities.
"E-commerce remains a large opportunity for us
across all of our brands," BellRing Brands said. "In
the long term, we also believe the food service and
dollar channels are attractive markets where our
brands are positioned for success.
"Innovating to deliver delicious tasting products
with quality nutrition is a key growth driver of our
brands. We are an insights-driven organization, and
our innovation pipeline is guided by meeting unmet or underserved consumer needs. We employ a
dual path innovation strategy with line extensions
combined with category disrupting innovation." CP

Chief executive officer -
Robert V. Vitale

Post Holdings, Inc. net sales

Post Holdings, Inc.
net (loss) earnings

(fiscal years ended in September)

Post Holdings share price

per share
$115

(fiscal years ended in September)

in millions

$107

-$3
2016

106 \ November 2019

$35

$457

2017

2018

$99

$5,027

$5,225

$6,257
$91

2016

2017

2018

$83
Oct.
2018

Dec.

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Milling & Baking News Corporate Profiles - 2019

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