Post Holdings Inc., the owner of the Grape- Nuts and Honeycomb breakfast cereals, agreed to buy Mom Brands Co. for $1.15 billion to add bagged and hot cereals to its product lineup.

Post will pay $1.05 billion in cash and about 2.45 million shares to the owners of closely held Mom Brands, St. Louis-based Post said in a statement today. Post has arranged to borrow as much as $700 million to help pay for the purchase, and also plans to sell about $240 million in stock, the company said.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.