Ralcorp to Buy American Italian Pasta
June 23, 2010
The diversified food maker Ralcorp Holdings agreed to buy American Italian Pasta Company for about $1.2 billion in cash to further expand its product portfolio, reports Reuters. The company offered $53 a share for American Italian Pasta, which is a 27 percent premium. Ralcorp, which sells various products including Post cereals, corn snack products, syrups and salad dressings, intends to pay for the deal partly through cash and borrowings under its credit facilities and potentially debt or equity offerings. The company expects the deal to close during its fourth fiscal quarter ending Sept. 30.