After a century of rivalry, St. Louis-based Post Holdings Inc. has announced that it has acquired MOM Brands Co. for $1.15 billion. In order to diversify its business, Post has been involved in numerous acquisitions since its spinoff from Ralcorp Holdings Inc. in 2012, as Americans are eating less cereal in favor of low-carbohydrate breakfast items that can be eaten away from home. Last year Post acquired Power Bar, Musashi Brands, and the private label peanut butter maker, American Blanching Co. According to the deal for MOM Brands which is expected to close by the third quarter of this year, Post will pay $1.05 billion in cash and issue 2.45 million Post shares for for the acquisition. Post reports it expects to see $50 million in cost synergies in the third full year after closing after consolidating administration, infrastructure, and sales forces between the two companies.
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