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Post, the maker of Raisin Bran and Honey Bunches
of Oats, will pay $1.05 billion in cash and issue 2.5 million
shares to the owners of MOM Brands.
MOM Brands' ready-to-eat food and cereal brands include
Malt-O-Meal, Frosted Mini Spooners, Golden Puffs, Cinnamon
Toasters, Fruity Dyno-Bites, Better Oats, and Three Sisters.
Post has been aggressively pursuing deals since it was spun off
from Ralcorp Holdings in 2012. The cereal maker said in April
that it would buy egg and dairy producer and distributor Michael
Foods Inc [MIKL.UL] for $2.45 billion.
Post said on Monday that Richard Koulouris, former president of
Ralcorp's food group, would lead the combined cereal business of
MOM Brands and Post. He will join Post on Feb. 9.
ConAgra Foods Inc acquired Ralcorp in January 2013.
Post also estimated net sales of about $1.07 billion and
adjusted earnings before interest, taxes, depreciation, and
amortization of about $126 million-$128 million for the first
quarter ended Dec. 31.
Analysts on average were expecting net sales of $1.07 billion,
according to Thomson Reuters I/B/E/S.
Barclays and Credit Suisse are Post's financial advisers for the
deal and Lewis, Rice & Fingersh LC is its legal adviser.
BofA Merrill Lynch is MOM Brands' financial adviser and Faegre
Baker Daniels LLP is its legal adviser.
Post's shares closed at $41.44 on the New York Stock Exchange on
Friday.
(Reporting by Shailaja Sharma in Bengaluru; Editing by Don
Sebastian and Kirti Pandey)
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