Ralcorp Holdings Inc has signed a definitive agreement to purchase Bakery Chef Inc, a manufacturer of frozen griddle products (pancakes, waffles, and French toast) and frozen pre-baked biscuits sold primarily in the foodservice channel. Bakery Chef also produces pre-baked frozen muffins, breads, and rolls.
A grocery food producer, Ralcorp has agreed to pay $287.5 million in cash for the company. Bakery Chef had net sales of $165 million for the year ended Dec 31, 2002.
The transaction is expected to close within 30 days, subject to customary conditions including the Hart-Scott-Rodino waiting period. Ralcorp will finance the acquisition primarily through borrowings under its existing $275 million revolving credit facility.
Bakery Chef will become a wholly owned subsidiary of Ralcorp and will operate as a platform for entry into the foodservice channel and frozen food segment. Its headquarters will remain in Westmont IL (a suburb of Chicago). Bakery Chef operates five manufacturing facilities and employs approximately 800 people.
