Ralcorp Holdings, Inc. announced that it has signed a definitive agreement to purchase Medallion Foods, Inc., a manufacturer of value brand and private label corn-based snack products including tortilla chips, corn chips and extruded corn products

Food & Drink Weekly, June 20, 2005

Ralcorp Holdings, Inc. announced that it has signed a definitive agreement to purchase Medallion Foods, Inc., a 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. Ralcorp's diversified product mix includes: ready-to-eat and hot cereals; crackers and cookies; snack nuts; chocolate candy; salad dressings; mayonnaise; peanut butter; jams and jellies; syrups; sauces; frozen griddle products including pancakes, waffles and French toast; frozen biscuits; and other frozen pre-baked products such as breads and muffins.