Ralcorp Holdings Inc. (NYSE: RAH) will distribute about 80% of the stock in its spin-off of Post Holdings Inc. to Ralcorp shareholders. Each shareholder will get one share of Post stock for every two shares of Ralcorp. The new company will trade on the NYSE under the symbol ‘POST’.
Post will now compete more directly with other cereal makers like General Mills Inc. (NYSE: GIS) and Kellogg Co. (NYSE: K). Last summer Ralcorp beat back a hostile takeover bid by ag giant ConAgra Corp. (NYSE: CAG). Ralcorp bought the cereal business from Kraft Foods Inc. (NYSE: KFT) in 2008.
Ralcorp will retain the private-label food business, while Post will get the branded products like Grape Nuts and Honey Bunches of Oats. Ralcorp expects to realize about $900 million in the spin-off and will retain 20% ownership of Post.
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