Ralcorp Holdings Announces Agreement to Purchase Bloomfield Bakers
Ralcorp will finance the acquisition primarily through borrowings under its existing $150 million revolving credit facility.
07/03/07 Ralcorp Holdings, Inc. announced that it has signed a definitive agreement to purchase Bloomfield Bakers a leading manufacturer of nutritional and cereal bars and natural and organic specialty cookies, crackers and cereals sold to branded businesses under co-manufacturing arrangements and to private label retail customers. Ralcorp has agreed to pay $139.6 million in cash (before the effect of a pending net asset settlement adjustment) for all ownership interests in Bloomfield and its affiliated entity, Lovin Oven, L.L.C. Bloomfield Bakers had net sales of $188 million for the year ended December 31, 2006. Based upon Bloomfield's 2006 results and Ralcorp's initial estimates of the acquired intangible assets and related amortization, Ralcorp anticipates the transaction will be slightly accretive during the remainder of its 2007 fiscal year.
The Hart-Scott-Rodino waiting period has expired; the transaction is expected to close within thirty days, subject to customary closing conditions. Ralcorp will finance the acquisition primarily through borrowings under its existing $150 million revolving credit facility.
Bloomfield Bakers will become a part of Ralcorp's Ralston Foods business unit. Bloomfield's headquarters and management group will remain in Azusa and Los Alamitos, California, where it operates two leased manufacturing facilities and employs approximately 500 full-time employees.
Bloomfield Bakers is currently operated by Harold Rothman and William Ross, who have grown it from a small bakery into a leading producer of the highest quality nutritional bars, cereal bars and specialty cookies, crackers and cereal products. Messrs. Rothman and Ross will remain with the company.
Ralcorp Holding, Inc. stated, "We are excited about the addition of Bloomfield Bakers and its superior management team. Bloomfield will allow Ralcorp to expand into the growing nutritional and cereal bar categories and offer Ralcorp the ability to further develop its natural and organic baked offerings."
