Post Holdings Inc. said Tuesday it will buy refrigerated foods producer Bob Evans Farms Inc. in a deal with an equity value of about $1.5 billion. Under terms of the deal, Post, a consumer goods holding company, will pay $77 for each Bob Evans share outstanding, which is 5.6% above Monday’s closing price of $72.93. With 19.92 million shares outstanding, the deal, which is expected to close in the first calendar quarter of 2018, values Bob Evans at $1.53 billion. The expected cost synergies is about $25 million a year, which should be achieved by the third year after the closing. Post expects the deal to add to revenue growth and free cash flow immediately after the closing. “This transaction creates enhanced and certain value for our stockholders, while providing further resources and reach to deliver the Bob Evans experience to a broader audience of consumers and retailers,” said Bob Evans Chief Executive Mike Townsley. Bob Evans stock, which was still halted for news, has soared 37% year to date, while Post shares have gained 6.8% and the S&P 500 has climbed 12%.
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