Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, February 24, 2023

Article Excerpt

POST HOLDINGS INC., $91.72, symbol POST on New York, is a leading maker of cereals and packaged foods. The company has four operating segments: Post Consumer Brands (36% of sales), Foodservice (38%), Weetabix (8%), and Refrigerated Retail (18%). It also holds a 50% equity interest in the Alpen Food Company South Africa Limited, a maker of RTE (ready-to-eat) cereal and muesli. In October 2019, Post sold shares of its BellRing Brands business to the public through an IPO. BellRing makes protein bars, shakes and nutritional supplements. On March 10, 2022, Post distributed its remaining 80.1% stake in BellRing to its shareholders. Meanwhile, on February 8, 2022, Post announced it would buy several pet food brands from J.M. Smucker Co. (symbol SJM on New York), including Rachel Ray, Nutrish, Nature’s Recipe, 9Lives, Kibbles ‘n Bits, and Gravy Train. The company is paying $700 million in cash plus issuing $500 million of its shares to Smucker for the $1.2 billion purchase price. Those Smuckers’ brands generated…