ST. LOUIS (AP) -- Post Holdings is buying the PowerBar and Musashi brands from Nestle SA, further diversifying its business by expanding into the active nutrition category.
Financial terms were not immediately disclosed.
The PowerBar and Musashi brands make premium bars, powders and gels. Musashi is a leading sports nutrition brand in Australia.
The transaction also includes other related worldwide assets.
Post expects to combine the PowerBar and Musashi brands with its current active nutrition portfolio to create an active nutrition group with anticipated annual revenue of nearly $550 million. The PowerBar and Musashi brands will join with Post-owned Premier Nutrition's Premier Protein and Joint Juice brands and Dymatize Enterprises' Dymatize and Supreme brands.
David Ritterbush, president and CEO of Premier Nutrition, and Greg Venner, president and CEO of Dymatize, will serve as co-CEOs of Post's active nutrition group. Ritterbush and Venner will report to Post President and Chief Operating Officer Terence E. Block.
The deal is expected to close in Post's fiscal third quarter. The company said Monday that it plans to fund the transaction with available cash.
Post, based in St. Louis, makes cereals such as Grape-Nuts, Great Grains and Honeycomb. In January it completed its $370 million acquisition of Dakota Growers Pasta Company
The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.