Ralcorp Selling Post Stake
St. Louis-based Ralcorp announced that it is selling its remaining stake -- about 6.8 million shares -- in Post Holdings Inc. to settle approximately $200 million in debt. Ralcorp spun off its branded cereal division, Post, in February to focus on its private label foods but had retained a 20% ownership stake.
Post's cereals include Grape-Nuts, Honey Bunches of Oats and Raisin Bran. Following the spin off, Post's headquarters moved to Brentwood.
Investors are taking on a majority of Ralcorp's stake in Post. Brentwood-based Post said it was buying 1.75 million shares from its former parent company.
Ralcorp plans to use the funds from the sale to make acquisitions of other private label food companies.
"We are pleased to announce the agreement to monetize our ownership interest in Post," Kevin Hunt, Ralcorp's CEO and president, said in a statement. "The proceeds from the transaction will enhance our ability to execute against our growth through acquisition strategy, allowing us to continue to create significant shareholder value. With the resolution of our Post stake, the consolidation of three private brand units into our new Ralcorp center store business and our ongoing cost reduction efforts, Ralcorp is well positioned to execute against our strategic plan and continue to deliver long-term sustainable growth."
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