Post Holdings to buy Bob Evans for $1.53 billion

Post Holdings, the St. Louis-based packaged goods holding company, is buying Bob Evans Farms in a deal worth about $1.53 billion, the Associated Press reports.

Post, which is best known for its cereal brands, including Honey Bunches of Oats, Malt-O-Meal and Weetabix, is expanding its footprint in packaged foods with the acquisition of Bob Evans, which makes and distributes a variety of refrigerated potato, pasta, vegetable and meat products.

Bob Evans also has a growing foodservice business, according to a release from Post. It also used to own a restaurant chain, but it sold that in April.

Post will pay $77 per share for Bob Evans, which represents a 5.6 percent premium over the company’s closing price Monday, $72.93.

Bob Evans shares spiked more than 5 percent in pre-market trading on news of the deal.

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