Staff Report
Published June 21, 2010

St. Louis-based Ralcorp Holdings Inc. and American Italian Pasta Co., which has a plant in Columbia, announced plans today to merge.

Both companies’ boards of directors unanimously approved the merger agreement, under which Ralcorp will acquire all outstanding shares of American Italian Pasta Co. common stock for $53 per share in cash. Total purchase price for American Italian Pasta Co. is approximately $1.2 billion.

Kevin J. Hunt, who oversees Ralcorp’s snacks, sauces and spreads, and frozen bakery products businesses as co-CEO and president, said in a news release announcing the merger, “This transaction strengthens our position as a diversified provider of private-label and branded food products, and we anticipate that by adding AIPC’s No. 1 position in private-label dry pasta, strategically located production facilities, solid brands and top-tier customer base to Ralcorp’s capabilities, we will be able to better address a broader spectrum of customer and consumer needs.”

Ralcorp, based in St. Louis, also recently acquired North American Baking Ltd. and J.T. Bakeries Ltd. American Italian Pasta Co. is based in Kansas City, Mo.

The merger is expected to close during Ralcorp’s fourth fiscal quarter, which ends Sept. 30. Upon completion of the transaction, American Italian Pasta Co. will become a wholly owned subsidiary and will operate as an independent division of Ralcorp, reporting to Hunt.