Post Holdings Inc., which purchased several pet food brands and the private-label pet food business from The J.M. Smucker Co. in April, has now agreed to acquire Perfection Pet Foods LLC for $235 million, according to a release. Perfection is a private-label and co-manufacturer of pet foods and baked treats with two processing facilities in Visalia, Calif., which are included in the acquisition.
The plants, Post said in the release, are expected to provide additional manufacturing capacity to insource a portion of its current pet food business, as well as an entry point into the private label and co-manufacturing pet food category. As such, Post expects the acquisition to reduce its future capital expenditures previously earmarked for capacity expansion.
Inclusive of stand-up costs, Post management expects Perfection to contribute approximately $25 million of adjusted EBITDA in the 12 months following the close of the acquisition, which is expected to come late in the fourth calendar quarter of 2023.
