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.
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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.
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