ConAgra buying Ralcorp in $5 billion bet on store brands

Long-time suitor ConAgra Foods Inc finally sealed a deal to buy private-label foods maker Ralcorp Holdings Inc for $5 billion, to tap into the booming business for packaged food that stores sell under their own brands.

Demand for private-label foods has outpaced growth in branded packaged foods as consumers buy more lower-priced options marketed by stores. ConAgra Chief Executive Gary Rodkin said he expects that growth to continue.

Combining Ralcorp's scale as a leading private-label provider with ConAgra's innovation and category management, "you've got a very powerful story in a very fragmented private-label industry," he said.

The deal, broadens ConAgra's exposure to faster-growing retailers with robust private-label brands, like Whole Foods and Costco, he said.

Read Full Article from Chicago Tribune

- Posted: 2012-11-27 15:36:40

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