Dymatize sold to Post Foods for $380 Million

[Arnold]

Dymatize sold to Post Foods for $380 Million
by Anthony Roberts on Dec 9, 2013

Post Foods, who you probably just know as ?Post?, have recently purchased Dymatize for $380MM. According to Post, Dymatize had net sales of $146 million and adjusted EBITDA of $23 million, for the nine months ended September 30, 2013. Dymatize makes?uhh?I have no idea. I don?t use it and I don?t know anybody who uses it. I?ve always looked at them similarly to Optimum Nutrition, i.e. a commodity (whey, aminos, etc?) firm with little innovation of interesting products. Post makes some vaguely healthy breakfast cereals like Grape Nuts (which contain neither grapes nor nuts) and Raisin Bran (which contains both raisins and bran) plus some shredded wheat based stuff. They also make Fruity Pebbles Xtreme (it?s pretty xtreme for a breakfast cereal featuring cartoon characters that nobody under 30 can identify).

 

[kweichangcaine]

That's all? I'd had paid $381 mil...
seems like a lot of supp competition out there...I know a good proforma and financials make the business decision to buy or not, but Post, being the heavy hitter multi national they are, could have started their own successful supp company. $380mill buys a lot of marketing for a new startup. Supplements don't cost shit for the most part; just sayin, a third of a billion dollars....I think we'll find this to be a bad move. Stick to raisin bran.

Caveat exemption: IML and blackstone lab products are more costly "supps". Real chemistry involved here. I'm talking about your run of the mill, whore me out, amino acids...proteins....glutamine...creatine....PWO powders, POST workout powders, all the shit a 25 cent per hour china person can grind out from the feces of rotting tilapia farms and mutant, fetid, milk cow, concentration camps.