ConAgra Foods to acquire Ralcorp Holdings for $5 billion
28 Nov 2012
ConAgra Foods Inc, the $12.4-billion US food conglomerate, yesterday said that it would buy Ralcorp Holdings Inc, for about $5 billion, ending a year-long pusuit of the US-based private-label food maker.
The acquisition will make ConAgra North America's biggest manufacturer of cereals, crackers and other packaged foods sold under store labels.
ConAgra, best known for its Chef Boyardee and Slim Jim, has offered to pay $90 a share, a 28-per cent premium to Ralcorp's closing price on 26 November. Including debt, the deal is valued at $6.8 billion and is expected to be completed in March.
The agreed deal ends a 20-month pursuit by Conagra, whose earlier three takeover attempts since March 2011 were rejected by the board of Ralcorp. (See: Ralcorp Holdings once again rejects ConAgra's sweetened takeover offer)
This will be the seventh acquisition by Conagra in the last two years following the purchases of National Pretzel Company, Del Monte Canada, Odom's Tennessee Pride, Bertolli frozen meals, the pita chip business of Kangaroo Brands and others.
St Louis, Missouri-based Ralcorp is the third-largest maker of cereal in the ready-to-eat category in the US, behind Kellogg and General Mills and reported $4.3 billion in sales last year.
