ConAgra Foods Inc, the $12.4-billion US food conglomerate, yesterday said it would acquire National Pretzel Co from Brookstone Holdings to expand its presence in private-label food manufacturing.
ConAgra Foods, which abandoned its August $5.17-billion bid for rival Ralcorp Holdings Inc, did not disclose the financial terms of its latest proposed acquisition.
Lancaster, Pennsylvania-based National Pretzel is a private label supplier and branded producer of pretzels and related products.
It makes private label pretzels in a variety of forms, including rods, sticks, braids and twists for a variety of customers, including many of the top grocery retailers in America and sells nearly all its products through retail and foodservice channels throughout the US and Canada.
National Pretzel has posted net sales growth of 7 per cent annually over the last three years, with total net sales approaching $200 million. The company has a leading position in the supply of private label pretzel items.
Under the deal, ConAgra, the maker of Healthy Choice meals, Slim Jim meat snacks and Reddi-wip, will also get National Pretzel products sold under the HK Anderson and Shultz labels, and three bakeries located in Visalia, California, Lancaster and Hanover in Pennsylvania.