Ralcorp Holdings to purchase Medallion Foods
The transaction is expected to close on or before June 30, 2005, subject to customary conditions including the expiration or termination of the Hart-Scott-Rodino waiting period.
15/06/05 Ralcorp Holdings, Inc. has announced that it has signed a definitive agreement to purchase Medallion Foods, Inc., a leading manufacturer of value brand and private label corn-based snack products including tortilla chips, corn chips and extruded corn products. Medallion had net sales of $42.8 million for the year ended December 31, 2004. Terms of the transaction have not been disclosed.
The transaction is expected to close on or before June 30, 2005, subject to customary conditions including the expiration or termination of the Hart-Scott-Rodino waiting period. Ralcorp will finance the acquisition primarily through borrowings under its existing $150 million revolving credit facility.
As a result of the transaction, Medallion will become a wholly owned subsidiary of Ralcorp and will operate as a part of the Ralston Foods cereal and snack business. Ralston Foods has a small presence in salty snacks through its private label snack mix products. Medallion's products will greatly expand Ralcorp's current product offerings in the growing snack food category. Medallion's current management has an outstanding record of growing their business and will remain with Ralcorp. Medallion operates one manufacturing operation in Newport, Arkansas and employs approximately 270 employees.
