ConAgra Foods Inc., Omaha, Neb., and Ralcorp Holdings Inc., St. Louis, announced today that the boards of directors of both companies have unanimously approved a definitive agreement under which ConAgra Foods will acquire Ralcorp, the largest manufacturer of private-label food in the U.S.
Under the terms of the agreement, Ralcorp shareholders will receive $90 per share in cash for each outstanding share of common stock held, a 28.2% premium to the closing price of Ralcorp’s common stock on Nov. 26, 2012, and a 24.9% premium to the average closing price of Ralcorp’s common stock for the 30 trading days ending Nov. 26, 2012. The transaction is valued at approximately $6.8 billion, including the assumption of debt, and expected to close by March 31.