By Kevin McCauley
Brunswick Group and Joele Frank, Wilkinson Brimmer Katcher represent ConAgra Foods and Ralcorp Holdings, respectively, in the $5B deal to forge an $18B food giant that trails only Kraft Foods in North America.
ConAgra CEO Gary Rodkin believes the acquisition of Ralcorp’s private label packaged foods business will accelerate its “recipe for growth strategy.” The Omaha-based company now becomes the biggest private label brand in the U.S. with combined sales of $4.5B.
The trick for ConAgra is to prevent St. Louis-headquartered Ralcorp’s private label brands from cannibalizing sales of its national label line that includes Chef Boyardee, Hunt’s, Orville Redenbacher, Slim Jim, Marie Callender, Hebrew National, Wesson, Reddi Wip, Egg Beaters, LaChoy, Peter Pan, Morton, Blue Bonnet, Banquet and Swiss Miss.
The deal, which is expected to close by the end of next year’s first quarter, is expected to yield about $225M in cost synergies.
Steve Lipin and Gemma Hart handle ConAgra Foods, while Aaron Palash, Eric Brielmann and Eric Bonach rep Ralcorp. |