August 4/St. Louis/PRNewswire-FirstCall -- Ralcorp Holdings Inc. completed its previously disclosed purchase of the Post cereals business from Kraft Foods Inc. The merger is valued at approximately $2.6 billion, including the issuance of Ralcorp common shares and the assumption of debt.

Post is the third largest branded ready-to-eat cereal manufacturer in the U.S., with over 100 years of history in the industry. Post includes iconic brands such as Honey Bunches of Oats, Pebbles, Post Selects, Spoon Size Shredded Wheat, Grape-Nuts and Post Raisin Bran.

The expanded Ralcorp includes a strong team of approximately 9,000 employees in North America, including Post's existing marketing and sales support team, which continues to be headquartered in New Jersey, and its existing R&D team, which continues to be located in Battle Creek, Michigan. Ralcorp acquired the Post cereal manufacturing plants in Battle Creek, Michigan; Jonesboro, Arkansas; Modesto, California; and Niagara Falls, Ontario, and retained the employees at these facilities.

David P. Skarie, co-chief executive officer and president of Ralcorp, said, "We welcome the Post management team and employees to the Ralcorp family. Post cereals will become a key part of the Ralcorp businesses and will enhance Ralcorp's existing cereal offerings."

From the August 18, 2008, Prepared Foods e-Flash