Post Holdings Reportedly Working with Investment Bankers to Explore Possible Transaction with Lamb Weston

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Post Holdings, Inc. (NYSE:POST) is working with investment bankers to explore a possible transaction with Lamb Weston Holdings, Inc. (NYSE:LW), a frozen potato products maker facing pressure from an activist investor to sell itself, two sources familiar with the matter said. For packaged goods company Post, which makes Grape Nuts cereal and Bob Evans mashed potatoes, Lamb Weston has long been an attractive business that it considered buying in 2015 when the french-fry maker was still part of Conagra. Now Post is again exploring ways to own Lamb Weston and is consulting with bankers in the tight-knit food industry, said the sources who insisted on anonymity because the discussions are private.

Post has a market value of roughly $7 billion and the sources said there would be considerable synergies with Lamb Weston, which has a market value of roughly $10.5 billion, if a combination were to occur. Representatives for Post and Lamb Weston declined to comment.