Bob Evans Farms Bought By Post In $1.53 Billion Deal
Your balanced breakfast may soon come all from the same company.
Bob Evans Farms is being bought by the St. Louis-based food conglomerate, and breakfast behemoth, Post Holdings.
Post is buying Bob Evans Farms for $1.53 billion, in a deal expected to close in first calendar quarter of 2018.
Stephen Anderson, a research analyst who focuses on restaurant and consumer sectors, says there will probably be layoffs as the deal moves forward.
"Given that Post Holdings is located in St. Louis, they've already announced $25 million in cost savings and other synergies they're expected to gain from the merger," Anderson says. "There are also some production facilities - there are four across the United States - there may be some consolidations there as well."
But she doesn't expect the company to completely leave the state.
“Bob Evans is a company with a deep history and it dates back nearly 70 years in the state of Ohio,” Anderson says. “I do think they'll keep some presence in their New Albany headquarters.”
Bob Evans Farms, based in New Albany, sold off its restaurants earlier this year to California-based firm Golden Gate Capital for $565 million. The company announced it would focus on its popular prepackaged foods operation, which makes sausage, potatoes and other food items.