Investing.com - Shares of Bob Evans Farms Inc (NASDAQ:BOBE) rallied Tuesday following the news that the company will be purchased by Post Holdings Inc (NYSE:POST)Inc for about $1.5 billion.
Post Holdings, a cereal maker, was interested in Bob Evans, a frozen and refrigerated foods maker, to expand its product offerings.
Post Holdings will fund the deal through cash on hand and debt. The company expects the transaction will close by the end of its second quarter of fiscal 2018. Post expects the deal will result in cost savings of $25 million.
Bob Evans shares were up almost 6% in afternoon trade. Post was fractionally higher.