Post Holdings is expanding its presence in the egg industry as the company is acquiring Willamette Egg Farms.
Post Holdings entered the egg business after it purchased Michael Foods in June 2014. Once the Willamette Egg transaction is completed, Post Holdings intends to combine Willamette Egg with Michael Foods, the sixth largest egg company in the United States.
Willamette Egg is a producer, processor and wholesale distributor of eggs and egg products, with a leading market share position in the Northwest United States. Headquartered in Canby, Oregon, Willamette Egg owns two egg production facilities located in Oregon and Washington and has been operating since 1934. Willamette Egg produces shell eggs, specialty shell eggs (including cage-free and organic eggs) and value-added egg products.
"This transaction nicely complements our portfolio and fits well into Michael Foods," said Rob Vitale, Post's president and CEO. "Willamette Egg will further increase our leadership as the country's largest provider of cage-free egg products and contributes to additional geographic flock diversification."
On a full year basis, Willamette Egg is expected to contribute approximately $80 million to net sales and approximately $15 million of Adjusted EBITDA to Post's results. Willamette Egg, according to the WATTAgNet Top Poultry Companies Database, doubled its cage-free production in 2013.
Post anticipates completing the acquisition early in its first quarter of fiscal 2016. The acquisition is expected to be funded from cash on hand.