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Monday, January 26, 2015

Post Holdings to purchase MOM Brands to expand in hot cereals market, (NYSE: POST)

Cereal maker Post Holdings Inc said it would acquire privately held rival MOM Brands Co for about $1.15 billion in cash and stock to expand in the bagged and hot cereal categories.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 purchase egg and dairy producer and distributor Michael Foods Inc for $2.45 billion.

Post Holdings, Inc. (Post) is a consumer packaged goods holding company operating in the center-of-the-store, refrigerated, active nutrition and private label food categories. Shares of POST traded higher by 7.19% or $2.98/share to $44.42. In the past year, the shares have traded as low as $30.94 and as high as $60.63. On average, 685550 shares of POST exchange hands on a given day and today's volume is recorded at 567693.