St. Louis based Post Holdings announced earlier this week that it has formed 8th Avenue Food & Provisions (“8th Avenue”), consisting of Post’s private brands business, and it has entered into an agreement with Thomas H. Lee Partners, L.P. (“THL”), a premier private equity firm investing in middle-market growth companies since 1974, pursuant to which Post and THL together will separately capitalize 8th Avenue.
Post explored a range of structural alternatives for its private brands business resulting in Post and THL agreeing to organize and capitalize 8th Avenue for the purpose of driving consolidation in the private brands category. Jim Dwyer will continue as President and Chief Executive Officer of 8th Avenue. 8th Avenue management, Post management and THL have deep expertise operating and executing transactions in the private brands and consumer packaged goods categories and together will develop opportunities for 8th Avenue. By retaining a meaningful ownership of 8th Avenue, Post will participate in 8th Avenue’s growth while preserving the option to pursue a tax-efficient separation of its remaining position in 8th Avenue.
“We are excited about the potential to grow 8th Avenue Food & Provisions,” said Rob Vitale, President and Chief Executive officer of Post Holdings. “We could not ask for a better partner than THL and we are delighted to continue working with Jim Dwyer in further developing the business.”
The transaction is expected to be completed in October, subject to certain closing conditions, including the expiration of waiting periods under U.S. antitrust laws. Post will appoint five of the members of 8th Avenue’s Board of Directors, and THL will appoint one member.