Post, the US breakfast cereal firm, has announced that it is expanding its presence in chilled and frozen foods with the acquisition of Bob Evans Farms for an equity value of approximately $1.5 billion.
The firm said the deal would add a highly complementary portfolio of brands to its product range, including a leading brand in refrigerated side dishes. Bob Evans Farms 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.
“The addition of Bob Evans’ highly complementary portfolio of brands and products will meaningfully enhance Post’s refrigerated side dish offering, 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 company said in a statement.
“We have enormous respect for Bob Evans’ success and are excited about the growth opportunities this combination will create”, said Rob Vitale, Post president and chief executive officer. “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, Post said it expected to combine its existing refrigerated retail egg, potato and cheese business with Bob Evans Farms, establishing a dedicated refrigerated retail unit within the business.