Saturday, 1 February 2014

Stiritz up to old tricks at Post

  • Bill Stiritz is getting a lot of press for his involvement in Herbalife, but Mario Gabelli - in the Barron’s Roundtable - reminds that Stiritz is in the same league as John Malone and Warren Buffett when it comes to adding value, and as CEO of Post Holdings (POST) he’s employing the same strategies which so enriched the shareholders of Ralston Purina.

  • Stiritz has spent $1.4B on accretive acquisitions and Post has a 10.2% market share in cereal and a foothold in organic and natural foods - a segment set to grow exponentially.

  • Pro forma revenue could be more than $2B in the year ending September 2015, says Gabelli (it was about $1B in the year ended Sept. 13), and EBITDA could roughly quadruple in three years thanks to organic growth and synergies.

No comments:

Post a Comment