ConAgra clears conditions to acquire Ralcorp

ConAgra clears conditions to acquire Ralcorp

CONAGRA Foods Inc. last week reported that the waiting period in the U.S. for regulatory review of its proposed acquisition of Ralcorp Holdings Inc. has expired and that the Canadian Competition Bureau has advised that it does not plan to pursue a review of the acquisition.

ConAgra said the clearances satisfy two major requirements for the acquisition to go forward, but the company noted that the purchase remains subject to certain other closing conditions, including approval by Ralcorp shareholders.

ConAgra, a leading manufacturer of branded food products, reached an agreement to acquire Ralcorp, the largest manufacturer of private-label food products in the U.S., in November (Feedstuffs, Dec. 3, 2012). ConAgra said it would buy Ralcorp for $90 per share, or $6.8 billion, including an assumption of debt.

The acquisition would give ConAgra $18 billion in sales, making it the second-largest packaged food company in the U.S. behind Kraft Foods Group Inc., which has $19 billion in sales.

ConAgra, headquartered in Omaha, Neb., and Ralcorp, headquartered in St. Louis, Mo., both market products through virtually every food format, including club and warehouse stores, convenience stores, grocery stores and restaurants.

ConAgra's brands are found in 97% of U.S. households.

The acquisition is scheduled to close by March 31.

Volume:85 Issue:03

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