ConAgra Foods announces acquisition of Ralcorp for $6.8bn

US-based ConAgra Foods has completed the acquisition of Ralcorp, a leading manufacturer of private label food in the US, for $6.8bn, including the assumption of debt.

ConAgra Foods agreed to acquire Ralcorp on 26 November 2012 for $90 per share of Ralcorp common stock in cash.

The completion of the deal follows the approval of the acquisition by Ralcorp’s shareholders on 29 January, and the receipt of all required regulatory clearances.

The acquisition has created one of the largest packaged food companies in North America, with a combined workforce of more than 36,000 and sales of approximately $18bn annually.

It also positions ConAgra Foods as a leading private label packaged food business in North America, with about $4.5bn in annual private brand sales.

ConAgra Foods chief executive officer Gary Rodkin said the company is now in a position to begin the most substantial aspects of integration planning.

"This important acquisition reinforces and accelerates our ‘Recipe for Growth’ strategy, which also includes growth in our core business and adjacencies, and expansion internationally," Rodkin added.

With the acquisition of Ralcorp, ConAgra Foods has a balanced range of consumer branded, private brand, commercial and foodservice offerings, with consumer brands being the company’s leading portfolio.

ConAgra Foods noted that it plans to use its substantial scale and operational expertise to leverage long-term growth opportunities in the private brand segment.

ConAgra Foods will continue to be headed by chief executive officer Gary Rodkin, while Kevin Hunt, former CEO of Ralcorp, will be a consultant to ConAgra Foods for the next 12 months.

Ralcorp produces a wide variety of private label products such as ready-to-eat and hot cereals; nutritional and cereal bars; crackers and cookies; food service, frozen griddle products and biscuits; food service and breads, rolls and muffins.

ConAgra Foods, headquartered in Omaha, Nebraska, produces a wide range of food products including cooking oil, frozen dinners, hot cocoa, hot dogs, peanut butter and many others.

The company’s brands include Hunt’s, Healthy Choice, Marie Callender’s, Slim Jim, Reddi-wip, Egg Beaters, Hebrew National, PF Chang’s, and Bertolli ready meals.

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Image: The acquisition of Ralcorp positions ConAgra Foods as one of the leading packaged food companies in North America, with annual sales of $18bn. Photo courtesy of ConAgra Foods.