ConAgra Foods to Acquire Ralcorp in $6.8 Billion Deal
ConAgra Foods, one of North America’s leading food companies, is acquiring Ralcorp, the largest manufacturer of private label food in the US, in a deal valued at approximately $6.8 billion, including the assumption of debt.
This transaction creates one of the largest packaged food companies in North America, with sales of approximately $18 billion annually and more than 36,000 employees. It will also position ConAgra Foods as the largest private label packaged food business in North America, with combined private label sales of approximately $4.5 billion.
Gary Rodkin, chief executive of ConAgra Foods comments: “The acquisition of Ralcorp is a logical and exciting step for ConAgra Foods. Adding Ralcorp provides us with a much larger presence in the attractive and growing private label segment and accelerates our Recipe for Growth strategy. The transaction will allow us to apply our scale and combined operational expertise to this important growth area, and will strengthen our position as one of the leading food companies in North America. We believe the balanced combination of our very significant branded food business, the largest private label food business in North America, and our important commercial food businesses, will enable ConAgra Foods to deliver even greater value and innovation to our customers and consumers, and sustainable profitable growth to our shareholders.”
