The Supply Side briefs: Post acquisition, Staples hires, Eddie Bauer eyed
by February 3, 2014 10:00 pm 183 views
• Post acquires PowerBar, Musashi brands
In a move to expand its active nutrition category, Post Holdings has agreed to acquire the PowerBar and Musashi brands and related worldwide assets from Nestle S.A. Financial terms of the transaction were not disclosed.
Post said it plans to combine the PowerBar and Musashi brands with its active nutrition portfolio to form a singular Active Nutrition Group with expected annualized revenue approaching $550 million. 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, according to Euromonitor.
The PowerBar and Musashi brands manufacture and market premium bars, powders and gels in geographies that represent more than 90% of global category sales, according to Euromonitor. PowerBar was acquired by Nestle in 2000. Musashi is a leading sports nutrition brand in Australia and enjoys leading levels of awareness among its target audience, physically active males.
“It’s truly exciting to continue the transformation of Post and to increase the role active nutrition will play in that transformation,” said William P. Stiritz, chairman and CEO. “I’m confident that the talented associates joining Post from Nestle will make a powerful contribution towards this continued transformation.”
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.
• Staples makes two exec appointments
Staples Inc., office supply giant, said last week that Joe Doody, the president of its North American commercial unit, has been named vice chairman with a mandate to “lead Staples’ strategic reinvention.”
Doody will continue to report to Ron Sargent, the company’s chairman and CEO, the company said in a press release.
Staples has been striving to reinvent itself as it faces tough trends in the office supply retail business.
In addition to announcing Doody’s new job, Staples named executive vice president Shira Goodman to be the president of the North American commercial unit. Both appointments are effective Feb. 2.
“Joe has done a tremendous job leading our commercial businesses through a time of enormous change and growth,” Sargent said.
• Jos. A Bank Clothiers eyes Eddie Bauer
Jos. A Bank is reportedly in talks to buy retailer Eddie Bauer from private equity owner Golden Gate Capital, according to Reuters.
The men’s clothier said has been in a prolonged struggle with rival Men’s Wearhouse with each party trying to acquire the other.
Jos. A. Bank has signed nondisclosure agreements related to possible acquisitions of other companies besides Men's Wearhouse. It isn't clear whether the company is seriously pursuing any other deal besides Eddie Bauer, according to Reuters report.
Golden Gate bought Eddie Bauer out of bankruptcy in 2009 for $286 million in cash plus the assumption of hundreds of millions of dollars in liabilities.