Ralcorp to Spin-off Post Cereals on January 30th (RAH, GIS, K, CAG, KFT)
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…
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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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.