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ConAgra buys private label leader Ralcorp |
11.30.2012
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Consumer food giant ConAgra Foods has bought Ralcorp, the largest manufacturer of private label food in the U.S., in a deal announced Tuesday. The purchase price was $4.95 billion (approximately $6.8 billion including debt).
The acquisition creates the largest private label packaged food business in North America, with combined private label sales of approximately $4.5 billion. ConAgra's other food businesses make it one the largest packaged food companies in North America, with about $18 billion annual sales and more than 36,000 employees.
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The two companies' portfolios are complementary, with very little duplication. Ralcorp's leading private label offerings include cereal, pasta, crackers, jellies and jams, syrups, frozen waffles, and more. Ralcorp's total annual sales of approximately $4.3 billion also include a branded and commercial/foodservice portfolio
Gary Rodkin, ConAgra Foods CEO, added, "Clearly, consumer dynamics have changed since the recession and we expect growth in private label food to continue to outpace growth in branded food. At the same time, we remain very proud of and fully committed to our brands."
Industry analysts estimate that private label now represents 18 percent of sales in the U.S. packaged food market.
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