The maker of Post cereals, which bought the Minnesota-based maker of Malt-O-Meal earlier this year, is combining the corporate offices of the two operations in the Twin Cities suburb of Lakeville.
As a result of the decision, St. Louis-based Post Holdings will close its cereal headquarters in Parsippany, N.J., where about 200 people worked. Some of them will be offered the chance to move to Minnesota.
The announcement Friday ends a period of uncertainty for local workers at MOM Brands, the longtime Minnesota company that Post bought in January for $1.15 billion.
The chief of MOM Brands, Chris Neugent, was tapped to lead Post Consumer Brands, the new Post unit formed by the deal. Post's main headquarters will remain in St. Louis.
A spokesman didn't return a call for comment. Post Holdings' stock traded lower for most of the day and closed down 1.9 percent.
Post is known for Honey Bunches of Oats, Raisin Bran, Grape-Nuts and Honeycomb.
In addition to Malt-O-Meal, MOM Brands makes low-priced versions of established brands. The company's bestselling cereal, Frosted Mini Spooners, resembles Kellogg's Frosted Mini-Wheats. It also makes private-label cereals, oatmeal under the Better Oats label and other cereals branded Mom's Best.
Post said it will save about $50 million in annual expenses by combining the operations in Minnesota. It said it expects a one-time charge of up to $30 million to cover severance, relocation and other expenses in downsizing the New Jersey office.
