ConAgra Foods Acquires Ralcorp Holdings

Ralcorp has strengthened its leadership position in private label through recent strategic acquisitions and enhanced customer relationships. The two companies’ portfolios are a complementary fit, with very little overlap in terms of offerings. 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.

The combined company will have significant operating capabilities across its branded, private label and commercial / foodservice businesses, including:

• A robust sales and marketing function that drives top-line growth
• A strong research, quality and innovation platform
• A management team with deep industry experience and strong talent across the organization
• A core understanding of delivering value to the customer and consumer
• A consumer and shopper insights-driven focus
• Procurement and risk management expertise
• Well-developed productivity capabilities and experience with complex supply chains

With Ralcorp, ConAgra Foods will have a balanced portfolio with a stronger growth profile. The transaction is also expected to increase ConAgra Foods’ importance to customers and consumers, with product offerings across a wide range of price points, segments and channels. The enhanced breadth and depth of the combined portfolio is expected to allow ConAgra Foods to build deeper customer relationships and drive additional category growth.

Gary Rodkin, chief executive officer of ConAgra Foods, 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, which will remain the largest part of our business and are found in 97 percent of America’s households. We believe our combination of branded, private label and commercial offerings, supported by leading functional capabilities, represents a unique and balanced approach that allows us to address the full range of customer and consumer requirements and adapt to the changing demands of the food industry.”

More information on the transaction can be found at www.conagrafoodstransaction.com.