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Post Holdings Inc. will acquire Mom Brands in a $1.15 billion cereal merger, the companies said today.
The transaction is expected to close by the third quarter of this year, following regulatory approval and customary closing conditions.
Richard K. Koulouris will join Post on Feb. 9 to lead the combined cereal business. Mom Brands Chairman and CEO Chris Neugent will continue to lead the Lakeville, Minn.-based company as president, and will report to Koulouris.
The deal will bring a series of hot cereals and ready-to-eat cereals, including Frosted Mini Spooners, Golden Puffs and Cinnamon Toasters, among others, to Post's already extensive product portfolio.
"By joining forces with Post, we will have more resources available to innovate, extend our brands and expand distribution," Neugent said. "We believe that this new, combined enterprise will be uniquely positioned to help our customers find new solutions in the highly competitive cereal category."
BofA Merrill Lynch is acting as exclusive financial advisor for the transaction, and Faegre Baker Daniels LLP is acting as legal advisor to Mom Brands.