Post Holdings Sells 8th Avenue Pasta Business to Richardson International for $375M.

Post Holdings is selling its pasta business, 8th Avenue Food & Provisions, to Richardson International for $375m in cash and $80m in leaseback obligations. The deal covers three production sites and approximately 500 employees will join Richardson International. Post Holdings will retain its nut butters, fruit and nut products, and granola businesses. The transaction is expected to generate an adjusted EBITDA contribution of $45-50m in fiscal year 2026.

Post Holdings, Inc. has announced the sale of its pasta business, 8th Avenue Food & Provisions, to Richardson International for $375 million in cash and $80 million in leaseback financial obligations. The deal, which was announced on August 29, 2025, covers three production sites located in Carrington, North Dakota; New Hope, Minnesota; and Winchester, Virginia. Approximately 500 employees from 8th Avenue Food & Provisions will join Richardson International [1].

The acquisition includes the Ronzoni pasta brand, a well-known retail brand in the pasta market. Richardson International expects to integrate the pasta business into its existing operations, leveraging its strengths in North American durum origination and milling to produce finished pasta products. The company aims to enhance its capabilities in both the retail and foodservice pasta markets [2].

Post Holdings will retain the nut butters, fruit, and nut products, and granola businesses of 8th Avenue Food & Provisions, which are expected to contribute approximately $45-50 million in adjusted EBITDA in fiscal year 2026 before the realization of cost synergies. The company expects these synergies to reach an annual run rate of around $15 million by the end of fiscal year 2026 [3].

The transaction is subject to customary regulatory approvals and conditions, with a closing expected later this year. BMO Capital Markets Corp. is serving as the financial advisor, and Koley Jessen as legal counsel to Richardson International Limited on the transaction [2].

Post Holdings has adjusted its fiscal year 2025 guidance for adjusted EBITDA upwards to a range of $1.5 billion–$1.52 billion from a previous range of $1.46 billion–$1.5 billion, factoring in a partial-year contribution from 8th Avenue. For the third fiscal quarter ending June 30, 2025, Post Holdings reported net sales of $1.98 billion, reflecting a 1.9% increase. Operating profit rose by 15.5% to $234.6 million compared to the same period in the previous year. Net earnings were reported at $108.8 million, marking a 9% increase [3].

References:
[1] https://www.just-food.com/news/post-8th-avenue-business-sale/
[2] https://www.morningstar.com/news/pr-newswire/20250829ca61642/richardson-to-acquire-pasta-business-of-8th-avenue-food-provisions
[3] https://seekingalpha.com/news/4490488-post-holdings-announces-sale-of-pasta-business-share-repurchase-authorization-of-500m