FDBusiness.com

Post Holdings, the third biggest breakfast cereal group in the US, is acquiring rival business MOM Brands Company in a deal worth $1.15 billion. Founded in 1919, MOM Brands is the fourth largest cereal company in the United States. 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. 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 in February to lead the combined Post Foods and MOM Brands cereal business.

The combined business will hold an 18% share of the US ready-to-eat cereals market, behind Kellogg’s with 32% and General Mills on 31%.

“By joining forces with Post, we will have more resources available to innovate, extend our brands and expand distribution,” says Chris Neugent. “We believe that this new, combined enterprise will be uniquely positioned to help our customers find new solutions in the highly competitive cereal category.”