Post Holdings Acquires Bob Evans Farms

Deal will expand manufacturer's presence in commercial foodservice

ST. LOUIS and NEW ALBANY, Ohio -- Post Holdings Inc., maker of brands such as Honey Bunches of Oats, Pebbles, Great Grains and Malt-O-Meal, will acquire packaged-food producer Bob Evans Farms Inc. The two companies have entered into a definitive agreement in which Post will acquire Bob Evans for $77 per share. The deal is poised to strengthen Post’s portfolio of brands and increase its presence in higher growth categories of the packaged-food market, the company said.

Founded in 1948, Bob Evans is a 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 about 35% of its volume. The foodservice business sells a range of products, including sausage, sausage gravy, breakfast sandwiches and side dishes, which are made to match individual customer specifications.

The addition of Bob Evans’ portfolio of brands and products will “meaningfully enhance” Post’s refrigerated-side-dish offering, according to a statement by Post. The deal will also provide Post with a presence in breakfast sausage and contribute to strengthening the company’s position in the higher growth perimeter of the store.

According to Post, acquiring Bob Evans will also broaden Post’s presence in commercial foodservice and create opportunities for future growth as one of North America’s largest packaged-food companies.

“We have enormous respect for Bob Evans’ success and are excited about the growth opportunities this combination will create,” said Rob Vitale, president and CEO of Post Holdings, St. Louis. “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.”

“We are pleased to join the Post family, combining our complementary portfolios to the benefit of all of our stakeholders,” said Mike Townsley, president and CEO of Bob Evans Farms, New Albany, Ohio. “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.”

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