Post Holdings to spend $1.15 billion to expand cereal offerings with MOM Brands acquisition

MarketsAssociated Press

Post Holdings is spending $1.15 billion to bulk up its presence in the market for bagged and hot cereals by buying the privately held MOM Brands Co., maker of Malt-O-Meal cereals.

Post 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.

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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