ConAgra Foods, Inc. will acquire Ralcorp Holdings, Inc. in a deal valued at $6.8 billion and announced today.
According to ConAgra’s website, the transaction will create the second-largest packaged-food company in the United States, with sales of about $18 billion annually; the first-largest is Kraft Foods Inc. with an annual $19 billion. The deal also positions ConAgra Foods as the largest private-label packaged food business in the U.S.
ConAgra Chief Executive Officer Gary Rodkin stated that he hopes his company can improve sales and promote growth through private-label foods – foods packaged under retailer labels to compete with larger brands.
In Iowa, Ralcorp maintains a packaged cereal plant in Cedar Rapids.