MOM Brands is a ready-to-eat cereal company that markets its products under such brand names as Malt-O-Meal, Golden Puffs, Cinnamon Toasters and many others.

ST. LOUIS — Post Holdings has entered into an agreement to acquire the MOM Brands Co., Minneapolis, for approximately $1.15 billion. MOM Brands is a ready-to-eat cereal company that markets its products under such brand names as Malt-O-Meal, Golden Puffs, Cinnamon Toasters and many others.

Once completed, the acquisition will make Post Holdings the third largest manufacturer of ready-to-eat cereals in the United States with a combined dollar share of the market of approximately 18%, according to the company.

“For Post, this is the right move, at the right price, in the right category,” said Rob Vitale, president and chief executive officer of Post. “After a century of spirited rivalry between MOM Brands and Post, we now look forward to combining our strengths.”

Upon closing, MOM Brands chairman and c.e.o. Chris Neugent will continue to lead the MOM Brands business as president, reporting to Richard K. Koulouris, who is joining Post Holdings Feb. 9 to lead the combined Post Foods and MOM Brands cereal business.

“By joining forces with Post, we will have more resources available to innovate, extend our brands and expand distribution,” Mr. 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.”

Mr. Koulouris brings to Post considerable consumer packaged goods senior executive level experience. In addition to his 35 years in the trade, he has experience in integrating acquisitions. He will report to Mr. Vitale.

For the fiscal year ended Dec. 27, 2014, Post management estimated MOM Brands had an adjusted EBITDA of between $119 million and $121 million. With the combination of the two companies, Post management further estimated the company will realize approximately $50 million in cost synergies by the third full fiscal year following the transaction.

Under the terms of the agreement, Post will pay $1.05 billion in cash and issue the current owners of MOM Brands approximately 2.45 million share of Post common stock. The company said that concurrent with the signing of the agreement with MOM Brands, Post obtained financing commitments under which several lenders have committed to provide up to $700 million under a secured term loan facility.