Ralcorp completes acquisition of Sara Lee unit
Oct. 3, 2011
ST. LOUIS — Ralcorp Holdings, Inc. has completed its $545 million acquisition of the North American private brand refrigerated dough business of Sara Lee Corp.
“We are pleased to complete this transaction, which enhances Ralcorp’s private-brand offerings and immediately positions Ralcorp as a leader in the $1.8 billion refrigerated dough category,” said Kevin J. Hunt, co-chief executive officer and president. “The acquisition of this cash-generating refrigerated dough business will make important contributions to Ralcorp’s earnings following the planned separation of the Post cereals business and represents the continuation of our strategy of enhancing shareholder value through private-brand acquisitions."
The Sara Lee refrigerated dough business includes a full range or private-label products including biscuits, crescent rolls, pizza and pie crusts and toaster pastries. Ralcorp expects the acquisition to be accretive 50c per share during the first year on a cash basis.