Ralcorp Announces the Acquisition of Gelit S.r.l.; Expects $0.05-0.07 GAAP Accretion
Ralcorp Holdings, Inc. (NYSE: RAH) today announced that it has completed the acquisition of Gelit S.r.l. ("Gelit"), a leading producer of private-brand, frozen ready meals in Italy. Ralcorp anticipates the transaction will deliver $0.05 of GAAP accretion and $0.07 of cash accretion to adjusted diluted earnings per share in the first twelve months of ownership, excluding one-time costs. Terms of the transaction were not disclosed.
"We are pleased to welcome the Gelit management team and employees to the Ralcorp family," said Kevin J. Hunt, Chief Executive Officer and President of Ralcorp. "We believe this combination further strengthens our position as a diversified provider of private-brand foods and adds numerous strategic benefits to our pasta platform."
With annual net sales of approximately $45 million, Gelit manufactures and distributes a complete line of private-brand, frozen ready meals directly to retail and wholesale customers primarily located in Italy and the United States. The company's product offerings include frozen meals representing authentic Italian recipes and include pasta, sauce and varieties with meat or fish. Gelit's extended product line also includes traditional crepe entrees.
Gelit is based in Cisterna di Latina, Italy, which is located approximately 30 miles southeast of Rome. With over 130 full-time employees, the business will operate as part of Ralcorp's American Italian Pasta Company division.
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