MOM Brands to be sold to Post
- MOM Brands has announced that it will be acquired by fellow cereal maker Post Holdings for $1.15 billion, pending customary closing conditions, such as regulatory approval.
- MOM Brands chairman and CEO Chris Neugent will stay on as president and will report to Richard K. Koulouris, who will join Post to lead the combined cereal businesses.
- The acquisition should close in the third quarter of 2015.
"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."
This merger doesn't come as much of a surprise considering the cereal industry's struggles, not to mention Post's hunt for new business ventures as noted by both The Wall Street Journal and Reuters. Perhaps this merger could be beneficial to all parties.