Post Holdings builds on its pet portfolio with new acquisition

Post Holdings has announced another large pet business acquisition, this time of Perfection Pet Foods, for a total of $235 million (€221.4M). This deal follows the holding company’s acquisition of some of J.M. Smucker’s pet food brands earlier this year.

Missouri-based Post Holdings will inherit 2 of Perfection Pet Foods’ manufacturing facilities based in Visalia, California, through the deal. The production plants are expected to boost the company’s manufacturing capacity. 

Post Holdings hopes to post $25 million (€23.5M) in earnings before tax in the 12 months after the closing of the deal.

Building off a successful pet entry

Pet food sales contributed over $275 million (€260M) to Post Holdings’ sales in the quarter ending 30 June 2023.

“We expect to be well positioned for FY2025 as we realize synergies from the pet acquisition, continue to improve supply chains and make incremental investments in marketing,” said CEO Rob Vitale a few months ago. 

Post Holdings said it expected around a $100 million (€94.3M) earnings surge within the first year of competition of the J.M. Smucker deal. However, this initial prediction has developed since the Q3 results were released, as Vitale notes, “Pet-food margin realization is exceeding expectations.”

Who is Perfection Pet Foods?

The Californian manufacturer was founded in 1987 by Kevin Kruse as part of a college project. Their first kibble plant opened in 2012, with a treat plant launching shortly after in 2014. 

Then, 4 years later, the company grew, adding 360,000 sq ft to its production, office and packaging space. More recently, the company opened its Visalia distribution centers in 2021. 

Now, Perfection Pet Foods is run by President Aubrey Michael, with Kruse as Chairman. He is also CEO of Western Milling, a feed company that has recently diversified into pet food.