Bob Evans Deal Does Not Meaningfully Change Our Outlook for Post Holdings; Shares Slightly Rich
No-moat Post Holdings has agreed to acquire Bob Evans Farms for $77 per share in a $1.5 billion cash deal; this should not materially affect our $79 fair value estimate for Post. Post agreed to buy the maker of refrigerated side dishes, sausage, and frozen food items for 15.4 times adjusted EBITDA (12.5 times after considering expected yearly synergies of $25 million), which strikes us as reasonable, given Bob Evans’ established retail brand. Bob Evans is expected to account for about 10% of pro...Post Holdings is a consumer packaged goods holding company. The company's segments are: Post Consumer Brands, which manufactures, markets and sells branded and private label ready-to-eat (RTE) cereal and hot cereal products; Weetabix, which markets and distributes branded and private label RTE cereal products; Foodservice, which produces and distributes egg and potato products; Refrigerated Retail, which produces and distributes side dishes, eggs and egg, cheese, sausage and other refrigerated products; and BellRing Brands, which markets and distributes ready-to-drink protein shakes, other RTD beverages, powders, nutrition bars and supplements in the nutrition category.
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Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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