Post Holdings buying Bob Evans Farms in $1.53B deal

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ST. LOUIS (AP) Bob Evans Farms is being sold to cereal maker Post in in a deal worth about $1.53 billion.

Bob Evans makes thinks like refrigerated potato, pasta and frozen convenience food items under a number of brands other than Bob Evans, which will strengthen Post's position in packaged foods. Bob Evans also has a food service business. It sold its restaurant chain in April.

Post Holdings Inc. 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 more than 5 percent in Tuesday premarket trading.