ST. LOUIS, Mo. (AP) — Private-label cereal maker Ralcorp Holdings, Inc. said Thursday it will purchase Kraft Foods Inc.’s Post cereals unit, the nation’s third largest with brands like Spoon Size Shredded Wheat and Post Raisin Bran.

The companies said the deal includes stock valued at $1.65 billion and that Ralcorp will also assume $950 million in debt, making the total deal worth about $2.6 billion. Under terms of the deal, Kraft will first split off or spin off Post and its related assets to Kraft shareholders.

The Post cereals business would then be combined with Ralcorp. Kraft shareholders would own about 54 percent of the new Ralcorp when the deal is complete, with Ralcorp shareholders owning about 46 percent.

The Post cereal business generated 2006 sales of $1.1 billion. Its brands also include Honey Bunches of Oats, Pebbles, Post Selects and Grape Nuts.

“This is a transforming event for Ralcorp,” said David P. Skarie, co-CEO and president of Ralcorp, who will be responsible for Post after the transaction is closed.

“The addition of Post cereals gives Ralcorp a truly distinctive line of branded cereal products, plus a branded infrastructure and platform that we can build on through organic growth and acquisitions.” He said Post’s existing marketing and sales support team will continue to be based in New Jersey, and its existing R&D team will continue to be located in Battle Creek, Mich.

Northfield, Ill.-based Kraft said the deal allows it to better focus on its own growth strategy. The transaction will boost Ralcorp’s 2007 sales by 50 percent to $3.3 billion a year from $2.2 billion, with Post cereals accounting for about 32 percent of total annual sales.

The deal is expected to close in mid-2008, subject to regulatory and Ralcorp shareholder approvals. Kraft will provide transition services for up to 18 months after closing.

The expanded Ralcorp will include the Post cereal manufacturing plants in Battle Creek; Jonesboro, Ark.; Modesto, Calif.; and Niagara Falls in Canada. Ralcorp will retain employees at these facilities.

New Holland supports use of pure biodiesel

NEW HOLLAND, Penn. — New Holland announced it supports the use of B100 biodiesel in all equipment with New Holland-manufactured diesel engines, including electronic injection engines with common rail technology.

Overall, nearly 80 percent of New Holland-branded products with diesel engines are now available to operate on B100 biodiesel. New Holland has also asked other suppliers of diesel engines used in New Holland-branded products to test and approve higher levels of biodiesel.

In addition to testing and development within the company, New Holland has been involved in an ongoing research project in collaboration with Penn State University’s College of Agricultural Sciences.

Penn State is operating new, unmodified New Holland tractors on B100 biodiesel on its 1,500-acre research farm to find out what equipment owners can expect when they use B100. After nearly two years of use, the tractors have performed with no adverse effects in performance or maintenance, according to Glen Cauffman, the university’s manager of farm operations and services.

The manufacturer stressed it is essential to use high-quality biodiesel produced to ASTM D6751 standards from a reputable supplier who can offer consistent fuel quality to ensure optimum performance and engine durability.

With the use of approved fuels, it is also essential that biodiesel be used in strict compliance with proper handling, storage and maintenance requirements to maintain the integrity of the fuel.

Mycogen Seeds expands into western market

INDIANAPOLIS, Ind. –– Mycogen Seeds is expanding its market by placing three contacts in different locations throughout the western United States.

Vernal Gomes, dairy account manager, was hired in July to develop the company’s growing California market. Dr. Peter Hill, dairy account manager and sales representative, previously held an agronomist position with Mycogen Seeds for the southern Plains district before moving to Texas in August to fulfill his new responsibilities.

Paul Lloyd, dairy account manager, is the newest member of the Western team, having joined Mycogen Seeds in September. He resides in Idaho.

Gomes, Hill and Lloyd will be responsible for the sales for Mycogen Seeds, specifically MYCOGEN brand SILAGE-SPECIFIC corn hybrids, in their areas. As the leader in SILAGE-SPECIFIC hybrids, Mycogen Seeds offers the largest corn silage breeding program in the industry.

The Mycogen Seeds research department constantly seeks to further the development of MYCOGEN brand SILAGE-SPECIFIC corn hybrids by eventually providing Mycogen Seeds customers with nutritionally enhanced corns, and alternative uses for SILAGE-SPECIFIC BMR and other corn silage hybrids.

Buhler elects new officers

WINNIPEG, Manitoba — Buhler Industries, Inc. has announced the election of new officers from Combine Factory Rostselmash, Ltd. The newly elected officers from Rostselmash are Dmitry Udras, chairman of the board of directors; Yury Ryazanov, CEO and secretary-treasurer; and Dmitry Lyubimov as president and chief financial officer. John Buhler has resigned as CEO and chairman of the board and Ossama AbouZeid has resigned as president, chief financial officer and secretary-treasurer.

The company plans to continue to produce and sell all the products built and marketed under the Buhler, Buhler Allied, Buhler Farm King, Buhler Inland and Buhler Versatile brand names. The dealer/distribution network will remain largely unchanged; however, the Rostselmash network of more than 200 dealers in Russia, Ukraine and Kazakhstan will now carry Buhler Versatile tractors.