St. Louis-based cereal manufacturer makes massive investment
ST. LOUIS (AP) - Post Holdings is spending $1.15 billion to buy the privately held MOM Brands Co., maker of Malt-O-Meal cereals.
The investment will bulk up Post's presence in the market for bagged and hot cereals. The company says it will pay $1.05 billion in cash and give MOM Brands owners nearly 2.5 million shares of stock for the acquisition, expected to be completed in the third quarter.
MOM Brands' product portfolio includes branded, ready-to-eat cereals as well as hot wheat and oatmeal products. The company is based in Lakeville, Minnesota.
Post Holdings Inc. plans to finance most of it and sell about $240 million in stock, subject to market conditions.
Post, which is based in St. Louis, also makes nutrition drinks and a variety of store-brand products including pasta and peanut butter