ConAgra eyes US private-label growth with Ralcorp deal
The US food giant's deal to buy Ralcorp Holdings, agreed a year after its approaches were rebuffed, will mean it becomes the country's largest private-label supplier.
ConAgra Foods has said it is "excited" about a deal that will mean it becomes the largest private-label group in the US despite concerns over its ability to grow brands and own label, as well as the long-term prospects of store brands in the US.
ConAgra Foods will become the largest own-label firm in the US with an acquisition of Ralcorp Holdings but there are concerns over whether it can manage brands and private label. There are also questions over the potential private label has for further growth in the US. Doug Knudsen, president of sales at ConAgra, tells Dean Best why the company is upbeat about the deal, its ability to grow brands and own label and the private label sector.
Talking to a just-food reporter over coffee in London this morning (27 November), I remarked that, relatively speaking, 2012 had seemed a quiet year for M&A in the global food industry, with few knock-out, mega-deals. Four hours later, an announcement emerged in the US.
ConAgra Foods CEO Gary Rodkin today (27 November) claimed the US food group's planned acquisition of private-label rival Ralcorp Holdings will put the company "front-of-centre" with retailers in North America.
This morning (27 November) saw the announcement that ConAgra Foods finally acquired US own-label group Ralcorp Holdings, a business that rejected a number of takeover bids from the company last year.
ConAgra Foods this morning (27 November) announced it has swooped to buy US own-label group Ralcorp Holdings, a business that rejected a number of takeover bids from the company last year.
US own-label group Ralcorp Holdings, which today (27 November) agreed to a takeover bid from ConAgra Foods, returned to profit in its fiscal 2012 year, boosted by acquisitions made during the year.
ConAgra Foods has swooped to buy US own-label group Ralcorp Holdings, a business that rejected a number of takeover bids from the company last year.
Activist investment group Corvex Management is using a newly-acquired interest in Ralcorp to push for changes at the private-label food firm.
ConAgra Foods has agreed to buy US private-label firm National Pretzel Co. for an undisclosed sum.
ConAgra Foods has withdrawn its US$5.18bn bid for Ralcorp Holdings after its takeover target refused to hold talks on the offer.
Ralcorp Holdings has again turned down a US$5.2bn takeover bid from fellow US food maker ConAgra Foods.
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