Ralcorp Holdings Announces Sale of Stake in Post Holdings, Inc.
Ralcorp retained an approximately 20% stake in Post as part of the separation of Post Foods, which was completed on February 6, 2012.
28 Sep 2012 --- Ralcorp Holdings, Inc. has agreed to the exchange of its remaining stake in Post Holdings, Inc. in settlement of approximately $200 million of debt outstanding under the Company's credit agreement dated August 30, 2012. Ralcorp retained an approximately 20% stake in Post as part of the separation of Post Foods, which was completed on February 6, 2012.
"We are pleased to announce the agreement to monetize our ownership interest in Post," said Kevin J. Hunt, Ralcorp's Chief Executive Officer and President. "The proceeds from the transaction will enhance our ability to execute against our growth through acquisition strategy, allowing us to continue to create significant shareholder value. With the resolution of our Post stake, the consolidation of three private brand units into our new Ralcorp Center Store business and our ongoing cost reduction efforts, Ralcorp is well positioned to execute against our strategic plan and continue to deliver long-term sustainable growth."
Ralcorp produces a variety of private-brand foods sold under the individual labels of various grocery, mass merchandise and drugstore retailers, and frozen bakery products sold to in-store bakeries, restaurants and other foodservice customers. Ralcorp's diversified product mix includes: ready-to-eat and hot cereals; nutritional and cereal bars; snack mixes, corn-based chips and extruded corn snack products; crackers and cookies; snack nuts; chocolate candy; salad dressings; mayonnaise; peanut butter; jams and jellies; syrups; sauces; frozen griddle products including pancakes, waffles, and French toast; frozen biscuits and other frozen pre-baked products such as breads and muffins; frozen and refrigerated doughs; dry pasta; and frozen ready meals.
