Ralcorp completes purchase of Post cereals
August 04, 2008
by Eric Schroeder
ST. LOUIS — Ralcorp Holdings, Inc. on Monday completed its $2.6 billion purchase of the Post cereals business from Northfield, Ill.-based Kraft Foods Inc.
As part of the transaction, Kraft shareholders received 30,466,805 shares of Ralcorp stock as well as $960 million in cash-equivalent value.
"We welcome the Post management team and employees to the Ralcorp family," said David P. Skarie, co-chief executive officer and president of Ralcorp. "Post cereals will become a key part of the Ralcorp businesses and will enhance Ralcorp’s existing cereal offerings."
Post is the third-largest branded ready-to-eat cereal manufacturer in the United States through such brands as Honey Bunches of Oats, Pebbles, Post Selects, Spoon Size Shredded Wheat, Grape-Nuts and Post Raisin Bran.
Shares of Ralcorp Holdings rose 5% to $56.80 in early trading Aug. 4 on the New York Stock Exchange; Kraft Foods’ share price, meanwhile, eased 2% to $31.28.