US: Post shares begin trading after Ralcorp spin-off completed
Shares in Post Holdings have begun trading in New York after the US cereal maker was spun off from private-label food group Ralcorp Holdings.
Ralcorp said yesterday (6 February) that its move to split the business in two had been completed at the close of business on Friday.
Shareholders in Ralcorp, which believes the spin-off will create more value for investors in both companies, received one share in Post for every two they owned in the private-label firm.
In December, Ralcorp reported annual losses of US$187m after falling sales from Post and "weakness" in the US branded cereal sector led the group to record impairment charges on the cereal business. A review of Post also warned of reduced sales growth and profitability of certain brands in the near-term.
However, Ralcorp has argued that Post's brand name will benefit the business. Post, meanwhile, plans to revamp its marketing team and focus more on its larger retail accounts as part of a series of measures to improve its performance.
Post's stock closed at $27.14 in New York yesterday after opening at $27.13 but falling at one stage to $26.70. Shares in Ralcorp fell 0.19% to $75.63.
Companies: Ralcorp Holdings
US private-label food group Ralcorp Holdings plans to bring its subsidiaries together to save money and drive "sustainable" growth....
Ron Wilkinson, president of Ralcorp Holdings' own-label cereal business, plans to leave the US food company....
The top stories on just-food this week had a distinctly French flavour. Danone issued a profit warning, with Spain's problems affecting the Activia maker. Meanwhile, French retail giant Carrefour's ne...
Ralcorp Holdings has acquired Italian private-label frozen ready meals maker Gelit for an undisclosed sum....
- Nestle catering for an ageing global population
- What post-Brexit trade with the EU could look like
- Unilever is "working harder" in tough environment
- What next for Nestle under new CEO Schneider?
- What delay means for UK child obesity strategy
- Kerry Foods sets its sights on C-sector
- Tesco drops John West products over sustainability
- Greencore pays GBP15m for Cranswick sandwich unit
- Job cuts imminent as General Mills restructures
- New Quaker Oats range targets wellness trend