When it comes to breakfast, Post wants to serve up more than cereal: The company says it’s paying $1.5 B for the Bob Evans packaged food business, so it can have a “presence in breakfast sausage.”
Along with sausage, Bob Evans Farms — which also includes the Owens, Country Creek, and Pineland Farms brands — sells things like potato, pasta, and vegetable-based side dishes in the refrigerated and frozen aisles of the grocery store.
The company also has a “growing” foodservice business peddling sausage, sausage gravy, breakfast sandwiches, and side dishes.
“The addition of Bob Evans’ highly complementary portfolio of brands and products will meaningfully enhance Post’s refrigerated side dish offering,” Post Holdings said, as well as “provide Post with a presence in breakfast sausage.”
Post is currently the third-largest cereal company in the U.S. However, the cereal industry in general has taken a hit in recent years, so it’s not surprising that the company is ready to branch out.
The deal has already been approved by both companies’ boards, and is expected to be complete in the first quarter of 2018.
Earlier this year, Bob Evans sold off its restaurant brand to a private equity firm, in an effort to focus on its packaged food division.