Post Holdings is not just about cereal any more. In a continuation of its massive acquisition sprees, the well-known cereal maker announced Monday it has agreed to buy privately-held MOM Brands Co. for $1.15 billion.

MOM Brands

Analysts point out the merger comes as Post reported strong results and a positive outlook in its December quarterly report. The company noted the robust results were related to increasing sales in the ready-to-eat cereal and egg, cheese and potato segments.

In a statement about the deal, Post said it will pay $1.05 billion in cash and issue the owners of MOM Brands  2.45 million shares of Post stock.

Post also noted said it anticipates around $50 million in run-rate cost synergies in the third full year after close of the deal related to sharing administrative services, infrastructure and a sales force. The acquisition is expected to be finalized sometime in the third quarter of this year.

MoM Brands just the latest in Post’s move to diversify

Post, based in St Louis, has been diversifying its product line since its spinoff from Ralcorp Holdings back in 2012. Management decided it had to diversify because it was increasingly clear that many Americans are eating less cereal in favor of breakfasts that they can eat on the go.

Post bought PowerBar and Musashi in 2014, as well as large private label peanut butter maker American Blanching Co.

Also of note, the acquisition will add both hot cereals and ready-to-eat cereals such as Golden Puffs and Cinnamon Toasters to Post’s line up of Honey Bunches of Oats, Grape-Nuts and Honeycomb cereals.

Statement from Post CEO

“For Post, this is the right move, at the right price, in the right category,” Post Chief Executive Rob Vitale noted in the company’s statement. “After a century of spirited rivalry between MOM Brands and Post, we now look forward to combining our strengths.”