Ralcorp acquires Kraft’s Post Cereals

Private label cereal maker Ralcorp Holdings acquired Kraft Foods' Post cereals unit, North America's third largest, whose brands include Honey Bunches of Oats, Pebbles, Shreddies, Spoon Size Shredded Wheat and Post Raisin Bran. The transaction included stock valued at US$1.65 billion and Ralcorp assuming US$960 million in debt making the transaction value approximately US$2.6 billion.

The transaction was effected through an exchange offer related to a split off transaction of Kraft's Post cereal business.  In the transaction, the shares of Ralcorp Holdings delivered as partial consideration for the acquisition of the Post cereal business were issued to Kraft.  The Ralcorp shares issued to Kraft were used by it to buy back some of its own shares and distributed the rest to the remaining Kraft shareholders.

The Aird & Berlis LLP team who assisted Ralcorp's in-house legal team and its external U.S. counsel, Bryan Cave LLP, was led by Martin Kovnats and included: Michael Bluestein, Peter Czegledy and Rebecca Kacaba (Commercial); Sam Billard (Banking); Eldon Bennett, John Longo and Barbra Miller (Employment/Pension); Leo Longo (Municipal); Lloyd Cornett and Christie McNeill (Real Estate); Carol Burns, Ron Choudhury, Brandon Hodge, Andrew Nicholls, Milovan Prelevic, Louise Summerhill and Barb Worndl (Tax); Ken Clark (Technology); and Bill VanderBurgh(Regulatory).