MINNEAPOLIS, Jan. 26, 2015 /PRNewswire/ -- MOM Brands today announced that it has entered into a definitive agreement for the sale of the company to Post Holdings, Inc. (NYSE: POST) in a transaction valued at approximately $1.15 billion.
The transaction, which is subject to customary closing conditions, including regulatory approval, is expected to close by the third quarter of 2015.
MOM Brands is a leader in the value segment of branded ready-to-eat and natural cereals, hot wheat and oatmeal. The company's brands include Malt-O-Meal® brand ready-to-eat cereals, such as Frosted Mini Spooners®, Golden Puffs®, Cinnamon Toasters®, Fruity Dyno-Bites®, Cocoa Dyno-Bites® and Berry Colossal Crunch®, as well as a variety of natural ready-to-eat and hot cereals, including MOM's Best®, Better Oats®, Three Sisters® and its original, farina-based Malt-O-Meal® cereal.
Upon closing, MOM Brands Chairman and Chief Executive Officer Chris Neugent will continue to lead the MOM Brands business as President, reporting to Richard K. Koulouris, who is joining Post Holdings February 9 to lead the combined Post Foods and MOM Brands cereal business.
"By joining forces with Post, we will have more resources available to innovate, extend our brands and expand distribution," Neugent said. "We believe that this new, combined enterprise will be uniquely positioned to help our customers find new solutions in the highly competitive cereal category. In addition, it will give us the opportunity to pursue our mission of saving families money on an even greater scale."
BofA Merrill Lynch is acting as exclusive financial advisor, and Faegre Baker Daniels LLP is acting as legal advisor to MOM Brands Company in connection with the transaction.
About MOM Brands
Founded in 1919, MOM Brands today is the fourth largest cereal company in the United States. The company manufactures more than 100 varieties of great-tasting, affordable branded family-favorite ready-to-eat and natural cereals, oatmeals and other hot cereals. Today, one in 11 servings of breakfast cereal eaten every day is a MOM Brands cereal. Dedicated to finding better ways to make a better breakfast at a better price, MOM Brands is continually innovating to produce, package and transport its cereals in ways that save families money and reduce environmental impact. Since 2007, MOM Brands has saved consumers nearly $1.5 billion in cereal purchases. For more information about MOM Brands and its cereal products, visit www.MOMBrands.com.
SOURCE MOM Brands