Ralcorp agrees to purchase Cottage Bakery
Oct 24, 2006 8:59 AM, from staff and wire reports
Ralcorp Holdings Inc has signed a definitive agreement to purchase Cottage Bakery Inc, a manufacturer of frozen par-baked breads and frozen dough sold in retail and foodservice channels. Ralcorp has agreed to pay $170.8 million in cash for all the stock in the company. In January 2007, Ralcorp will purchase the real estate associated with the business.
Cottage Bakery had gross sales of $125 million for the year ended June 30, 2006.
The transaction is expected to close within 30 days, subject to customary conditions including the Hart-Scott-Rodino waiting period. Ralcorp will finance the acquisition mainly through borrowings under its $150 million revolving credit facility.
After closing, Cottage Bakery will become a part of Ralcorp’s Frozen Bakery Product segment. Cottage Bakery’s headquarters will remain in Lodi CA, and Terry Knutson will remain president. The firm operates one manufacturing facility and employs about 690 people.
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