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Post Holdings to Sell 8th Avenue Pasta Business to Richardson
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Key Takeaways
Post Holdings will sell 8th Avenue's pasta business to Richardson for $375M in cash and liabilities.
POST will retain nut butters, fruit and nut, and granola, aiming for $45-$50M EBITDA in fiscal 2026.
Management approved a new $500M buyback plan after cancelling the prior authorization on Aug. 28.
Post Holdings, Inc. ((POST - Free Report) ) has agreed to divest the pasta business of its recently acquired 8th Avenue Food & Provisions to Richardson (US) Holdings Limited. Valued at $375 million in cash, with Richardson also assuming approximately $80 million in leaseback financial liabilities, the deal is expected to close in Post Holdings’ first quarter of fiscal 2026.
Post Holdings Divestiture Details
Post Holdings acquired 8th Avenue on July 1, 2025, and following this transaction will retain its nut butters, fruit and nut products, and granola businesses. These categories are slated for integration into the Post Consumer Brands segment.
The company expects the retained businesses to generate $45-$50 million in adjusted EBITDA in fiscal 2026, with an additional $15 million in annual cost synergies anticipated by year-end. Financially, the company highlighted that the implied valuation of these remaining businesses works out to less than seven times adjusted EBITDA, consistent with the multiples it highlighted when announcing the 8th Avenue acquisition on June 3, 2025.
Post Holdings Capital Allocation Strategy
Alongside the divestiture, Post Holdings’ management approved a new $500 million share repurchase authorization effective Aug. 29, 2025. This replaces its previous $500 million authorization, which became effective on Feb. 10, 2025, and was cancelled on Aug. 28, after the repurchase of $304.8 million shares.
Post Holdings’ Zacks Rank & Share Price Performance
Shares of this Zacks Rank #1 (Strong Buy) company have gained 2.7% in the past three months against the industry’s decline of 1.9%. The S&P 500 index has increased 9.6% in the same period.
POST Stock Past Three Months Performance
Image Source: Zacks Investment Research
Is POST a Value Play Stock?
Post Holdings currently trades at a forward 12-month P/E ratio of 14.13X compared with the industry average of 15.9X and the sector’s 17.18X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 6.6% and 19.1%, respectively, from the prior-year levels. CHEF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
Smithfield Foods, Inc. ((SFD - Free Report) ) produces packaged meats and fresh pork in the United States and internationally. It holds a Zacks Rank #2 (Buy) at present. SFD delivered a trailing four-quarter earnings surprise of 6.6%, on average.
The Zacks Consensus Estimate for Smithfield Foods’ current fiscal-year sales and earnings indicates growth of 7.1% and 28.7%, respectively, from the prior-year levels.
Laird Superfood, Inc. ((LSF - Free Report) ) manufactures and markets plant-based, natural and functional food in the United States. It has a Zacks Rank # 2 at present. LSF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and earnings indicates growth of 21% and 23.8%, respectively, from the prior-year levels.
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Post Holdings to Sell 8th Avenue Pasta Business to Richardson
Key Takeaways
Post Holdings, Inc. ((POST - Free Report) ) has agreed to divest the pasta business of its recently acquired 8th Avenue Food & Provisions to Richardson (US) Holdings Limited. Valued at $375 million in cash, with Richardson also assuming approximately $80 million in leaseback financial liabilities, the deal is expected to close in Post Holdings’ first quarter of fiscal 2026.
Post Holdings Divestiture Details
Post Holdings acquired 8th Avenue on July 1, 2025, and following this transaction will retain its nut butters, fruit and nut products, and granola businesses. These categories are slated for integration into the Post Consumer Brands segment.
The company expects the retained businesses to generate $45-$50 million in adjusted EBITDA in fiscal 2026, with an additional $15 million in annual cost synergies anticipated by year-end. Financially, the company highlighted that the implied valuation of these remaining businesses works out to less than seven times adjusted EBITDA, consistent with the multiples it highlighted when announcing the 8th Avenue acquisition on June 3, 2025.
Post Holdings Capital Allocation Strategy
Alongside the divestiture, Post Holdings’ management approved a new $500 million share repurchase authorization effective Aug. 29, 2025. This replaces its previous $500 million authorization, which became effective on Feb. 10, 2025, and was cancelled on Aug. 28, after the repurchase of $304.8 million shares.
Post Holdings’ Zacks Rank & Share Price Performance
Shares of this Zacks Rank #1 (Strong Buy) company have gained 2.7% in the past three months against the industry’s decline of 1.9%. The S&P 500 index has increased 9.6% in the same period.
POST Stock Past Three Months Performance
Image Source: Zacks Investment Research
Is POST a Value Play Stock?
Post Holdings currently trades at a forward 12-month P/E ratio of 14.13X compared with the industry average of 15.9X and the sector’s 17.18X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
POST Valuation Picture
Image Source: Zacks Investment Research
Other Stocks to Consider
The Chefs' Warehouse, Inc. ((CHEF - Free Report) ) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. It currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 6.6% and 19.1%, respectively, from the prior-year levels. CHEF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
Smithfield Foods, Inc. ((SFD - Free Report) ) produces packaged meats and fresh pork in the United States and internationally. It holds a Zacks Rank #2 (Buy) at present. SFD delivered a trailing four-quarter earnings surprise of 6.6%, on average.
The Zacks Consensus Estimate for Smithfield Foods’ current fiscal-year sales and earnings indicates growth of 7.1% and 28.7%, respectively, from the prior-year levels.
Laird Superfood, Inc. ((LSF - Free Report) ) manufactures and markets plant-based, natural and functional food in the United States. It has a Zacks Rank # 2 at present. LSF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and earnings indicates growth of 21% and 23.8%, respectively, from the prior-year levels.