Post to buy Bob Evans Farms for $1.53B

ST. LOUIS — Bob Evans Farms is being sold to Post in a deal worth about $1.53 billion, giving the cereal-maker a stronger presence in the grocery store through Bob Evans’ valuable refrigerated sides business.

Bob Evans makes products such as refrigerated potato, pasta and frozen convenience food items under a number of brands other than Bob Evans, such as Owens, Country Creek and Pineland Farms. Bob Evans, founded in 1948, also has a food-service business that sells products including sausage, sausage gravy, breakfast sandwiches and side dishes. It sold its restaurant chain to Golden Gate Capital in April.

Packaged-food makers have struggled as Americans increasingly seek out nonprocessed foods. In August, Campbell Soup said that it expected sales to continue to decline over the next year partly because of that trend, but also because of access to ready-to-cook meal delivery services and the desire to put more fresh produce on the dinner plate.

Post Holdings Inc. — whose cereals include Fruity Pebbles, Honey Bunches of Oats and others — will pay $77 per Bob Evans share, a 5.6 percent premium to the company’s Monday closing price of $72.93.

The boards of both companies have approved the sale, which is targeted to close in Post’s second quarter next year. Bob Evans’ shareholders must still sign off on the deal.

Shares of Bob Evans Farms Inc. jumped $4.48, or 6 percent, to close Tuesday at $77.41.