Post Holdings (POST) M&A Presentation summary

Strategic rationale and background

• 8th Avenue was formed in 2018 through a partnership, with Post contributing private label nut butter, pasta, and granola businesses and retaining some equity.

• 8th Avenue pursued a roll-up M&A strategy, acquiring in peanut butter and pasta, but faced capital structure challenges during and after COVID.

• Acquisition provides Post with depth in strategic categories, secures nut butter supply, and enables broader retail engagement.

• Entry into dry pasta allows operation at multiple price points, complementing existing cereal and nut butter businesses.

• Purchase price multiple is below 7x 8th Avenue's forecasted post-synergies Adjusted EBITDA, offering attractive capital allocation and free cash flow accretion.

Transaction summary and financial impact

• Post agreed to acquire 8th Avenue for an enterprise value of approximately $880 million, with a purchase price multiple of 6.8x forecasted post-synergies Adjusted EBITDA of $130 million.

• Acquisition to be financed with cash on hand and borrowings, increasing net leverage to about 4.6x.

• Expected annual synergies of $15 million by end of fiscal 2026; transaction is accretive to free cash flow.

• Acquisition expected to close July 1, 2025, and 8th Avenue will be integrated into Post Consumer Brands.

• Due diligence risk is mitigated by Post's existing ownership stake.

8th Avenue business overview

• 8th Avenue is the #1 private label peanut/tree nut butter and granola manufacturer, and #2 in private label dry pasta.

• FY24 net revenue was $1.1 billion, with 68% of sales through retail and 85% from private label and co-manufacturing.

• Product mix: 42% pasta, 39% nut butter, 11% granola, 8% fruit & nut.

• Operations include ten manufacturing facilities and six distribution centers.