Post Holdings Expands Market Reach with PPI Acquisition
Post Holdings, Inc. (POST) completed its acquisition of Potato Products of Idaho, L.L.C. (“PPI”) on March 3, 2025. This acquisition, first announced on December 17, 2024, represents a strategic move to enhance the company’s footprint within the food industry.
Although the financial terms of the deal have not been disclosed, this acquisition strengthens Post Holdings’ product range and bolsters its market position in the thriving food sector. With consumer preferences shifting towards convenient, value-added potato products, this strategic move sets POST up for sustained growth. Additionally, the acquisition includes a manufacturing facility in Rigby, underlining the company’s commitment to improving supply-chain efficiency and production capabilities.
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Additional Insights on Post Holdings
Post Holdings has consistently aimed to grow through strategic acquisitions. In December 2023, the company acquired Perfection Pet Foods, which is now part of the Post Consumer Brands segment. That same month, the company also acquired Deeside Cereals to enhance its Weetabix segment. These acquisitions were fruitful, contributing $60.8 million in sales during the first quarter of fiscal 2025.
In addition to its acquisition strategy, Post Holdings reported strong results in its Foodservice segment. In the first quarter of fiscal 2025, net sales increased by 8.7% to $616.6 million, with volume growth of 2.8%. This growth was driven by distribution increases in eggs, potatoes, and the introduction of ready-to-drink shakes. The Foodservice segment remains vital to Post Holdings’ long-term growth trajectory, supported by its expanding distribution network and premium product offerings.
With a robust acquisition strategy and a flourishing Foodservice sector, Post Holdings is well-positioned for future growth in the evolving food market. Over the past year, shares of this Zacks Rank #2 (Buy) company have risen 10.8%, in contrast to a 9.6% decline in the broader food industry.
Three Additional Consumer Staple Recommendations
Pilgrim’s Pride (PPC) operates in the chicken and pork product sectors and holds a Zacks Rank of 1 (Strong Buy). The company has delivered a 25.7% average positive earnings surprise over the last four quarters. For more insights, see the complete list of today’s Zacks #1 Rank stocks here.
Currently, the Zacks Consensus Estimate for Pilgrim’s Pride’s financial-year earnings indicates a decline of 5.4% compared to the previous year.
Tyson Foods, Inc. (TSN) operates globally in the food sector and also holds a Zacks Rank of 2. Tyson has achieved a trailing four-quarter earnings surprise of nearly 52% on average.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales and earnings suggests growth of approximately 0.9% and 22.6%, respectively, compared to the previous year.
Utz Brands (UTZ), known for its varied portfolio of salty snacks, carries a Zacks Rank of 2 and has a trailing four-quarter earnings surprise of 8.8% on average.
The Zacks Consensus Estimate for Utz Brands’ current financial-year sales and earnings forecasts growth of 1.2% and 10.4%, respectively, relative to the prior year.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
