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Post Holdings (POST) Boosts Portfolio With Almark Foods Buyout

Well-chalked acquisitions have been helping Post Holdings, Inc. POST to build a robust product portfolio. Progressing along such lines, the company completed its planned acquisition of Almark Foods (or Almark). Let’s take a closer look at this latest inclusion to the company’s portfolio and other growth endeavors.

Acquisitions Aid Boosting Portfolio Strength

Almark, which is renowned for its hard-cooked and deviled egg products, provides conventional, organic and cage-free products. The company’s products are distributed widely to retail outlets as well as foodservice distributors. Almark will join Post Holdings’ Michael Foods egg business. Further, Almark’s financial results are likely to be divided between Post Holdings’ Foodservice and Refrigerated Retail operating segments.

Post Holdings is actively pursuing acquisitions to expand presence in the food space. Last month, the company completed the acquisition of Conagra BrandsCAG Peter Pan peanut butter brand. Per the deal, Conagra will offer transitional services to enable the shift of the business. Currently, Peter Pan peanut butter products are co-produced by 8th Avenue Food & Provisions, Inc. — a Post Holdings affiliate. Notably, the Peter Pan peanut butter is one of the leading brands that cater to a diversified customer base in key channels. The company has also entered into a partnership with the plant-based products company — Hungry Planet Inc.

In earlier developments, Post Holdings’ acquisition of Latimer Newco 2 Limited led to the addition of Weetabix North America and Weetabix Limited to its portfolio. Weetabix now operates as one of Post Holdings’ five segments. Also, Post Holdings acquired Bob Evans, which strengthened its position in the Foodservice and Refrigerated Retail channels. Management has also undertaken other notable buyouts such as National Pasteurized Eggs, Inc. and MOM Brands Company, among others.

Wrapping Up

We believe that the aforementioned buyouts along with the latest inclusion of Almark, will continue supporting the company’s performance in the forthcoming periods. Apart from this, its investments to drive productivity and adoption of effective promotional strategies bode well. Shares of this Zacks Rank #3 (Hold) company have gained 3.7% in the past three months compared with the industry’s rise of 5.5%.

However, the company is apprehensive regarding headwinds in its Foodservice business. The segment has been affected by weak demand conditions emerging from reduced away-from-home dining trends amid the coronavirus pandemic. Foodservice businesses of several companies like Flowers Foods, Inc. FLO and General Mills, Inc. GIS among others are bearing the brunt of these pandemic-induced hurdles.

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