Thursday, Jul 28, 2016
One of America's Great Newspapers ~ Toledo, Ohio

Retail

ConAgra to buy Ralcorp, maker of store-label food, for $5B

ConAgra-Foods-Ralcorp-acquisition

With the deal, ConAgra, which has its headquarters in Omaha, will become the nation’s biggest maker of store-brand foods. Ralcorp makes products for companies including Kroger.

ASSOCIATED PRESS Enlarge

NEW YORK — ConAgra Foods is set to become the nation’s biggest maker of store-brand foods, with a $5 billion purchase of Ralcorp Holdings Inc., a major producer of cereals, crackers, and other packaged foods sold under private labels.

The deal announced Tuesday caps a year of acquisitions for ConAgra, which makes brands including Banquet, Chef Boyardee, and Marie Callender’s.

ConAgra will pay Ralcorp stockholders $90 a share. Shares closed Tuesday on the New York Stock Exchange at $88.80, up $18.57. The companies value the transaction at about $6.8 billion, when debt is included.

The deal, approved unanimously approved by both companies’ boards, is expected to close by March 31. It still needs Ralcorp shareholder approval.

Ninety-eight percent of American households use private label products on a regular basis, according to research firm NPD Group.

Ralcorp, based in St. Louis, makes products for a wide range of companies including Wal-Mart Stores Inc., Kroger Co., and McDonald’s Corp.

ConAgra already made private-label products along with name-brand foods that include Slim Jim, Healthy Choice, and Hebrew National.

With the Ralcorp purchase, about a quarter of the combined company's $18 billion in sales will now come from private labels.

Click to comment

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem?

Temporibus autem quibusdam et aut officiis debitis aut rerum necessitatibus saepe eveniet.

Copyright © 2015 Toledo Blade

To Top

Fetching stories…