Post Holdings to buy potato company for undisclosed amount

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Dive Brief:

• Post Holdings is buying Potato Products of Idaho, a manufacturer and packager of refrigerated and frozen potato products, for an undisclosed amount.
• The acquisition, which is expected to close in the first quarter of 2025, includes a manufacturing facility in Rigby, Idaho.
• The purchase will complement Post’s existing presence in potatoes. The St. Louis company owns Michael Foods, a manufacturer of egg products and refrigerated potatoes for the foodservice industry, as well as branded items such as Bob Evans sides and Simply Potatoes.

Dive Insight:

Since Post was spun off as a cereal-only company in 2012, it has completed more than 20 acquisitions that have broadened its reach into everything from peanut butter and mashed potatoes to liquid eggs and dog food. A key part of that strategy comes from owning businesses with similarities, or where synergies are created with its existing operations — a strategy highlighted by the purchase of Potato Products of Idaho.

The Idaho Potato Commission, a state agency responsible for promoting the famous spud, said on its website that Potato Products of Idaho makes refrigerated and frozen mashed, baked and roasted potatoes for foodservice and retail outlets, which fits squarely into channels where Post already has a presence. A spokesperson for Potato Products of Idaho could not be reached for comment. 

With the acquisition, Post will be able to boost output and serve more businesses that purchase potato products. It also will likely benefit from cost synergies and other efficiencies as it integrates Potato Products of Idaho into its existing operations.