Ralcorp Holdings To Acquire Sara Lee's Private Brand Refrigerated Dough Business for $545M

Ralcorp Holdings, Inc. RAH today announced that it has entered into a definitive agreement to acquire the North American private brand refrigerated dough business of Sara Lee Corp. SLE, for approximately $545 million. Sara Lee's refrigerated dough business is a leading manufacturer and distributor of a full range of private brand refrigerated dough products in the U.S. The business recorded net sales in excess of $300 million for its fiscal year ended July 2010. The acquisition is expected to be accretive on a GAAP basis by over $0.30 per share in year one, including synergies but excluding one-time acquisition related expenses. On a cash basis, Ralcorp expects accretion to be $0.50 per share during the first year. The acquisition is also expected to enhance Ralcorp's cash flow and generate operational synergies of approximately $6 million to $8 million annually after the third year post-closing, excluding one-time transition costs.