Post Holdings to Sell 8th Avenue Pasta Business to Richardson

Richardson (US) Holdings Ltd., which is the U.S. subsidiary of Canada’s Richardson International Ltd., has reached an agreement to acquire the pasta business of 8th Avenue Food & Provisions from Post Holdings Inc., according to releases from both companies.

Richardson will pay $375 million in cash and assume approximately $80 million in leaseback financial liabilities, Post’s announcement said. 8th Avenue was originally spun off from Post back in 2018 in partnership with equity firm THL Partners. However, last summer, Post reacquired the business, paying approximately $880 million to bring it back under its umbrella.

The deal with Richardson includes the Ronzoni retail brand, as well as production facilities in Carrington, N.D., New Hope, Minn., and Winchester, Va. About 500 8th Avenue employees will transfer to Richardson once the transaction is closed – which is expected later this year, following customary regulatory approval and conditions.

Post will retain the 8th Avenue nut butters, fruit and nut products, and granola businesses – and integrate them into the Post Consumer Brands segment, the company said.

With this acquisition, Richardson believes it strengthens its ability to connect its North American durum origination and milling with the production of finished pasta products.

“The handling and milling of durum wheat is a core strength of our business, and the opportunity to extend our reach into pasta builds directly on that foundation,” said Darwin Sobkow, president and CEO of Richardson International, in the release.