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Ralcorp finalizes Sara Lee refrigerated dough ops acquisition

Oct. 4, 2011
Ralcorp Holdings Inc has completed its acquisition of the North American private brand refrigerated dough business of Sara Lee Corporation.

Ralcorp Holdings Inc (NYSE: RAH) has completed its acquisition of the North American private brand refrigerated dough business of Sara Lee Corporation (NYSE: SLE).

“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 of Ralcorp. “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. We welcome the refrigerated dough business’ management team and employees to the Ralcorp family. The refrigerated dough business will become a key part of our frozen bakery division and will enhance Ralcorp’s bakery product offerings.”

This refrigerated dough business manufactures and distributes a full range of private brand refrigerated dough products in the United States. The acquisition is expected to be accretive on a GAAP basis by more than $0.30 per share in year one, including synergies but excluding one-time acquisition related expenses.

To fund the $545 million transaction, Ralcorp has entered into a short-term financing arrangement that is expected to be repaid with part of the proceeds generated by financing to be incurred in connection with separation of its Post cereals business unit, which is on pace to be completed near year-end. The refrigerated dough business employs about 700 people and has manufacturing and distribution facilities in Carrollton TX and Forest Park GA. It will operate as part of a broader Ralcorp Frozen Bakery Products division.

Ralcorp produces frozen bakery products sold to in-store bakeries, restaurants, and other foodservice customers. For more information, visit

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