Kraft shedding Post cereals for $1.65 billion

ST. LOUIS - Private-label cereal maker Ralcorp Holdings Inc. said Thursday it will purchase Kraft Foods Inc.'s Post cereals unit, the nation's third largest with brands like Spoon Size Shredded Wheat and Post Raisin Bran.

The companies said the deal includes Ralcorp stock valued at about $1.65 billion. Ralcorp will also assume $950 million in debt, boosting the total deal value to $2.6 billion.

"This acquisition is indeed a watershed event for Ralcorp," said Kevin Hunt, the St. Louis-based company's co-chief executive officer.

Everyone seems to be selling these days...