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Diving Briefs:
- According to JEFF Zadoks, the chief operating officer, Post Holdings is slowing the acquisition speed as tariffs and economic uncertainties have slowed.
- Zadoks said that it would focus on the “small tactical transaction” with all beings, from last week’s import call to cereal to refrigerated side dishes.
- In February, Zadoks said that the company is considering a “powerful pipeline” for potential acquisitions, expecting M & A activities in the food industry as a whole. However, recent tariffs have complicated M & A evaluation by creating uncertainty in the capital market, Zadoks said in May.
Dive Insights:
POST is one of the most active M & A players in the food industry and is collecting large portfolios for many years, including brands such as BOB EVANS and Fruit PEBBLES cereals. However, due to continuous economic uncertainty, the company must lightly tap the brake on the aggressive acquisition strategy that is the dominant force of the CPG sector.
Targets are increasing costs due to consumer expenses, and businesses can reduce overall evaluation in potential acquisition transactions, facing prospects for lower sales. POST has taken measures to re -purchase stocks to take its own position for the acquisition, but the company carefully evaluates the new opportunities before pulling the trigger.
POST’s most recent acquisition is the purchase of Ida Ho’s potato products for $ 124 million, representing the current approach of a company that focuses on small -scale synergy trading. The PPI complements business such as BOB EVANS to provide the company’s ability to control the operation further, the company said on the company’s May import phone.
The additional capacity opens the door where the post can enter the personal label when the consumer finds value.
Zadoks said, “We are seeing that personal labels are better and are taking some demand from the same product.” So we can think about how we see different categories through the new capacity we can use. “
In the second quarter, net sales decreased to $ 19.5 billion, down 2.3% year -on -year.
