Ralcorp set to receive $900 million in Post spin-off
ST. LOUIS — Ralcorp Holdings, Inc. said it will receive approximately $900 million from Post in connection with the tax-free spin-off of its Post cereal business. The announcement was made Dec. 23 as part of an amendment to the company’s Form 10 registration statement filed with the Securities and Exchange Commission.
Ralcorp said it will retain up to 20% of the outstanding shares of Post once it is spun off to shareholders, and it will use the proceeds of the transaction “to reduce debt, aggressively pursue private brand acquisitions and pursue additional share repurchases under the company’s remaining share repurchase authorization of approximately five million shares.”
Ralcorp said it continues to make progress toward the completion of the separation, which is expected by about the end of January 2012.