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General Mills acquired Ralston's breakfast cereal business in 1997.
Ralcorp, meanwhile, is spinning off its Post Foods cereal business.
That alliance prevents it from acquiring competing products like Quaker Oats's cereal business.
He got his start in the cereal business at the rival Post Cereals.
Kellogg's United States cereal business increased its market share in the quarter despite aggressive spending from competitors.
Kellogg's acquisition of Keebler, completed in March, came as Kellogg looked for ways to build beyond its core cereal business.
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But it still leaves Pepsi holding a pile of cereal businesses it doesn't really know what to do with.
"The healthy-cereal business is up 10percentt versus last year," mostly because more products are available in more stores, he said.
The Post cereals business would then be combined with Ralcorp.
It said its cereals business and Nespresso coffee continued to perform well.
In 2007, the company purchased the Post cereals business, maker of Honey Bunches of Oats and Grape-Nuts, from Kraft Foods for about $1.65 billion.
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