Ralcorp to Raise Funds for AIP Acquisition

Ralcorp Holdings is planning to sell $450m of its notes in an underwritten public offering to help fund its planned $1.2bn acquisition of American Italian Pasta Company (AIPC).

The company said AIPC will become a subsidiary and will operate as an independent division of Ralcorp.

Ralcorp reported 2009 revenue of $3.9bn and its Q3 profit fell nearly 29% to $53m, primarily on costs related to its bid for AIPC, it said.

AIPC makes dry pasta and has four plants, including one in Excelsior Springs.

Ralcorp manufactures private label food products, including frozen bakery products, cereals, crackers, cookies, condiments and other snacks.