Cereal maker Post Holdings is planning to consolidate its ready-to-eat cereal business with MOM Brands, a move that will put around 200 jobs at risk.
The new business, Post Consumer Brands, will be moved to Minnesota.
The company will shut down its Parsippany facility in New Jersey whose operations will be moved to MOM's existing facilities in Lakeville, Minnesota.
The consolidation is expected to save over $50m in costs. Post Holdings expects to incur $27m-$30m in employee severance, retention and relocation payments.
Earlier this month, Post completed the acquisition of ready-to-eat and natural cereals producer MOM Brands, in a previously announced deal worth $1.15bn.
MOM Brands offers Malt-O-Meal brand ready-to-eat cereals, such as Frosted Mini Spooners, Golden Puffs, Cinnamon Toasters, Fruity Dyno-Bites, Cocoa Dyno-Bites and Berry Colossal Crunch. It also offers a variety of natural ready-to-eat and hot cereals, including MOM's Best, Better Oats, Three Sisters and its original, farina-based Malt-O-Meal cereal.
The move comes amid big-ticket acquisitions by cereal makers in other food categories as Post, Kellogg, General Mills and other manufacturers witness sharp decline in sales for breakfast cereals, with more Americans shifting to lower-carbohydrate breakfasts.
