Kraft Foods has said it will split-off its post cereals business in a deal worth US$1.7bn with Ralcorp Holdings.


The move, initially announced last November, will see Kraft distribute all outstanding shares of its subsidiary Cable Holdco, which owns some assets and liabilities of Kraft’s Post cereals business.


Cable will combine with cereal maker Ralcorp’s Ralcorp Mailman unit.


Kraft will sell 24 Post cereal brands to Ralcorp for US$1.7bn in stock. Kraft will own 54% of the newly-created company.


In this split-off transaction, Kraft shareholders will have the option to exchange some or all of their shares of Kraft common stock and receive shares of Cable Holdco common stock, which will immediately be exchanged for shares of Ralcorp common stock following the merger. This will reduce the number of Kraft’s outstanding shares.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Approximately 30.4m shares of Cable Holdco will be offered in exchange for Kraft common stock.