OMAHA, Neb. — ConAgra Foods here and Ralcorp Holdings, St. Louis, announced that the boards of directors of both companies have unanimously approved a definitive agreement under which ConAgra Foods will acquire private-label food manufacturer Ralcorp.
The transaction is valued at approximately $6.8 billion, including the assumption of debt.
The acquisition will create one of the largest packaged food companies in North America, with sales of approximately $18 billion annually and more than 36,000 employees, according to a statement. It will also position ConAgra Foods as the largest private label packaged food business in North America, with combined private label sales of approximately $4.5 billion.
“The acquisition of Ralcorp is a logical and exciting step for ConAgra Foods. Adding Ralcorp provides us with a much larger presence in the attractive and growing private label segment and accelerates our Recipe for Growth strategy,” Gary Rodkin, chief executive officer of ConAgra Foods, said in a statement.
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