Ralcorp acquires Sara Lee’s dough business

Ralcorp, a US-based manufacturer of cereals, has completed the acquisition of Sara Lee’s North American private brand refrigerated dough business in a deal worth $545m.

Ralcorp co-CEO and president Kevin Hunt said the acquisition will position the company as a leader in the $1.8bn refrigerated dough category and make important contributions to Ralcorp’s earnings following the planned separation of its Post cereals business.

"The refrigerated dough business will become a key part of our frozen bakery division and will enhance Ralcorp’s bakery product offerings," he added.

In August, Sara Lee agreed to sell its refrigerated dough business, which provides a full range of private label products including basic and specialty biscuits, crescent rolls, pizza and pie crusts, and toaster pastries.

The business has manufacturing and distribution facilities in Carrollton, Texas, and Forest Park, Georgia, US.

The unit will operate as a part of Ralcorp’s frozen bakery products division.

To fund the transaction, Ralcorp has entered a short-term financing arrangement that is expected to be repaid with a portion of the proceeds generated by financing to be incurred in connection with the separation of its Post cereals business unit, which is expected to be completed by the end of the year.