Post Holdings announced that it has completed the sale of the pasta manufacturing and distribution operations of 8th Avenue Food & Provisions on December 1, 2025. The transaction closed for $375 million in cash and included the assumption of approximately $80 million in lease‑back liabilities, bringing the total consideration to $455 million.
The divestiture follows Post’s July 1 acquisition of 8th Avenue for $880 million. By shedding the pasta unit, Post is aligning its portfolio with its core strengths—cereal, pet food, and refrigerated products—while retaining the nut‑butter, fruit‑and‑nut, and granola businesses that will be integrated into the Post Consumer Brands segment. Management said the sale reflects a strategic focus on higher‑margin, growth‑oriented categories and a desire to streamline operations.
The $375 million cash proceeds and the release of $80 million in lease‑back obligations provide Post with additional liquidity. The company has already authorized a new $500 million share‑repurchase program, underscoring its intent to return capital to shareholders while maintaining flexibility for future investments. The sale also removes a non‑core asset that had limited synergy with Post’s existing product lines, improving operating leverage and simplifying supply‑chain management.
In its Q4 2025 earnings call, CFO Matt Mainer noted that the pasta business would contribute only a partial‑year amount to the 2026 guidance. With the sale now complete, Post will adjust its fiscal‑2026 Adjusted EBITDA outlook—previously projected at $1,500‑$1,540 million—to reflect the divestiture. The company’s focus on core segments is expected to support margin expansion and accelerate growth in its high‑margin categories.
The rapid turnaround—from acquisition in July to divestiture in December—highlights Post’s dynamic portfolio management. By quickly identifying and shedding a non‑strategic unit, Post demonstrates disciplined capital allocation and a clear commitment to strengthening its competitive position in the food industry.
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