ConAgra Foods receives Canada’s clearance to acquire Ralcorp

ConAgra Foods and Ralcorp have received a ‘no-action letter’ from the Canadian Competition Bureau confirming that the agency does not plan to challenge ConAgra Foods’ $6.8bn deal to acquire Ralcorp.

This move, which brings ConAgra Foods closer to completing the acquisition of Ralcorp, satisfies one of the conditions required for the completion of the transaction.

The deal remains subject to certain other closing conditions and approval by Ralcorp’s shareholders.

ConAgra Foods entered into an agreement in November 2012 to acquire Ralcorp as part of its plan to strengthen its private label business and expand internationally.

The acquisition will create one of the largest packaged food companies in North America, with annual sales of around $18bn and a combined workforce of more than 36,000.

It will also position ConAgra Foods as a leading private label packaged food business in North America, with sales of about $4.5bn.

The transaction, which is expected to modestly benefit ConAgra’s fiscal 2013 financial results, is expected to be completed by 31 March 2013.

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, P.F. Chang’s, and Bertolli ready meals.

---

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