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Consumer Sector Update for 01/26/2015: POST,LACO,CTP

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Consumer stocks were finishing mixed this afternoon with shares of consumer staples companies in the S&P 500 slipping about 0.2%. Shares of consumer discretionary firms in the S&P 500 were climbing nearly 0.5%.

In company news, Post Holdings ( POST ) was serving up big price gains for its stock after the breakfast-foods company announced a $1.15 billion buyout of MOM Brands, the privately held parent company of Malt-O-Meal cereals.

Under terms of the transaction, POST will pay $1.05 billion in cash and also issue 2.5 million shares of its stock valued at slightly nearly $104 million based on POST's closing price of $41.44 on Friday. The deal is expected to be immediately accretive to POST's adjusted EBITDA margins and free cash flow.

Separately, POST today reported preliminary Q1 net sales of $1.074 billion, in-line with Wall Street expectations. The company also announced plans to sell around $240 million of its common stock, with proceeds to be used to help finance its purchase of MOM Brands.

POST shares were up over 16% in late trade at $48.17 apiece, earlier climbing to a session high of $49.18 a share. The stock has traded within a 52-week range of $30.94 to $60.63 a share, retreating over 23% during the past year prior to today's gain.

In other sector news,

(+) LACO, Agrees to acquire Sartini Gaming, with the Sartini legacy shareholder receiving nearly 7.86 mln shares of LACO stock, worth about $55 mln based on LACO's $7 most recent closing price.

(-) CTP, Sells $12.5 mln of its common stock at an undisclosed per-share price.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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