Ralcorp Holding has sold its remaining stake in cereal maker Post Holdings as it looks to free up funds to support its growth strategy.
The company said that the sale of its remaining 20% Post stake will reduce outstanding debt by approximately US$200m.
Commenting on the move, Ralcorp CEO and president Kevin Hunt said the proceeds from the sale would allow the company to pursue its acquisition strategy.
Ralcorp Holdings Announces Sale of Stake in Post Holdings, Inc.
ST. LOUIS, Sept. 27, 2012 /PRNewswire/ -- Ralcorp Holdings, Inc. (NYSE: RAH) announced today that it has agreed to the exchange of its remaining stake in Post Holdings, Inc. (NYSE: POST) in settlement of approximately $200 million of debt outstanding under the Company's credit agreement dated August 30, 2012. Ralcorp retained an approximately 20% stake in Post as part of the separation of Post Foods, which was completed on February 6, 2012.
"We are pleased to announce the agreement to monetize our ownership interest in Post," said Kevin J. Hunt, Ralcorp's Chief Executive Officer and President. "The proceeds from the transaction will enhance our ability to execute against our growth through acquisition strategy, allowing us to continue to create significant shareholder value. With the resolution of our Post stake, the consolidation of three private brand units into our new Ralcorp Center Store business and our ongoing cost reduction efforts, Ralcorp is well positioned to execute against our strategic plan and continue to deliver long-term sustainable growth."