Nestle Sells PowerBar and Musashi to Post Holdings

4 Feb 2014 --- Nestlé has sold its premium sports nutrition business under the PowerBar and Musashi brands to a US-based consumer packed goods holding company, Post Holdings. Nestlé's premium sports nutrition business operates mostly in the US, Canada, western Europe, Australia, New Zealand and Japan. Post Holdings, based in St Louis, Missouri, is a leading manufacturer, marketer and distributor of branded ready-to-eat cereals in the United States and Canada.

The transaction is subject to customary closing conditions.

Post reported that this transaction furthers Post's efforts to expand upon its investment in the active nutrition category while continuing to execute against the strategy of transforming Post into a more diversified consumer goods company. Post anticipates combining this transaction with Post's current active nutrition portfolio to form a singular Active Nutrition Group with expected annualized revenue approaching $550 million. The acquired brands participate in the rapidly growing sports nutrition bar and sports nutrition supplement categories. The global active nutrition category is expected to remain strong with the category projected to grow at a compound annual growth rate of 7% between 2014 and 2017.

The combination of Premier Nutrition's Premier Protein and Joint Juice brands and Dymatize Enterprises' Dymatize and Supreme brands with the PowerBar and Musashi brands will afford Post a broad portfolio of brands addressing various segments of the category covering body building, endurance, life style and sports nutrition consumer interests and benefits. The combined portfolio will provide the Active Nutrition Group access to all channels of sales and distribution as well as all leading product forms including bars, shakes and powders while expanding its presence worldwide.

David Ritterbush, President and CEO of Premier Nutrition, and Greg Venner, President and CEO of Dymatize will serve as co-CEO's of the Active Nutrition Group within Post, reporting to Terence E. Block, President and COO of Post.

"It's truly exciting to continue the transformation of Post and to increase the role active nutrition will play in that transformation. I'm confident that the talented associates joining Post from Nestle will make a powerful contribution towards this continued transformation," said William P. Stiritz, Post's Chairman and CEO.

The PowerBar and Musashi brands manufacture and market premium bars, powders and gels in geographies that represent more than 90% of global category sales. PowerBar is an iconic brand in the active nutrition industry having been the very first energy bar created by athletes for athletes nearly thirty years ago. PowerBar has a very high awareness among bar users and has enjoyed high levels of trust among consumers for over twenty five years. Musashi is a leading sports nutrition brand in Australia and enjoys leading levels of awareness among its target audience, physically active males. 

Capital has been invested in the business over the past seven years and manufacturing capacity exists in the U.S., Germany and Australia to meet projected demand for the next three to five years. Post management believes that PowerBar can continue to capitalize on the high brand recognition PowerBar enjoys with focus and innovation to drive this iconic brand.

The transaction is expected to be completed in Post's fiscal third quarter, subject to customary closing conditions. Post expects to fund the acquisition with cash on hand.

Material terms of the purchase agreement will be filed with the Securities and Exchange Commission on a Form 8-K within four business days.