Newspaper article St Louis Post-Dispatch (MO)

Brentwood-Based Post Holdings to Buy Bob Evans Farms for $1.5 Billion

Newspaper article St Louis Post-Dispatch (MO)

Brentwood-Based Post Holdings to Buy Bob Evans Farms for $1.5 Billion

Article excerpt

Post Holdings Inc., the Brentwood-based company behind Honey Bunches of Oats and Grape-Nuts cereals, said Tuesday it will buy Bob Evans Farms Inc. for about $1.5 billion, adding vegetable-based side dishes and breakfast sausages to its portfolio.

Bob Evans shares rose 6.1 percent to close at $77.41, exceeding Post's offer of $77 per share.

The deal comes months after Post agreed to buy British breakfast cereal brand Weetabix for $1.8 billion.

Bob Evans sells frozen foods such as refrigerated potato, pasta and pork sausages under Bob Evans, Owens, Country Creek and Pineland Farms brands.

The company also has a food service business, representing about 35 percent of sales volume.

Post, which said it would fund the deal through cash on hand and debt, estimated cost savings of $25 million following the deal.

The company said the transaction was expected to close by the end of Post's second quarter of fiscal 2018. …

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