Post Holdings to acquire Bob Evans Farms for $1.5 billion
Post Holdings and Bob Evans Farms have entered into a definitive agreement in which Post will acquire Bob Evans for $77 per share, or approximately $1.5 billion.
Post Holdings and Bob Evans Farms have entered into a definitive agreement in which Post will acquire Bob Evans for $77 per share, or approximately $1.5 billion. The addition of Bob Evans’ complementary portfolio of brands and products will meaningfully enhance Post’s refrigerated side dish offerings, provide Post with a presence in breakfast sausage, and will immediately provide Post with a leading position in the higher growth perimeter of the store. The combination with Bob Evans will also strengthen Post’s presence in commercial foodservice, create opportunities for future growth, and enhance Post’s position as one of North America’s largest packaged food companies.
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 volume, which sells a range of products, including sausage, sausage gravy, breakfast sandwiches, and side dishes.
“We have enormous respect for Bob Evans’ success and are excited about the growth opportunities this combination will create,” said Rob Vitale, president and chief executive officer of Post Holdings. “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.”
Upon closing of the acquisition, which is expected to be complete in the first calendar quarter of 2018, 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.