* To pay $53 per share
* Offer at 27 pct premium
* Gives lower-than-expected Q3 EPS view
* Does not intend to give earnings outlook in future * Buys
2 pvt cos for undisclosed amount
June 21 Snack products company Ralcorp Holdings
Inc RAH.N agreed to buy American Italian Pasta Co AIPC.O
for about $1.2 billion, or $53 a share, in cash to expand its
presence in the North American pasta market.
The offer price is at a 27 percent premium to American
Italian Pasta's Friday close.
Ralcorp, which sells a variety of products including
cereals, corn snack products, syrups and salad dressings,
intends to fund the deal partly through cash and borrowings
under its credit facilities.
Ralcorp also said it expects to earn $1 a share in the
third quarter. This is significantly below analysts' average
estimate of $1.29 a share, according to Thomson Reuters
The company does not plan to give earnings outlook in
future except under "unique circumstances."
Separately, Ralcorp said it bought privately held North
American Baking Ltd and JT Bakeries Inc for an undisclosed
amount to expand its portfolio of gourmet cracker offerings.
It expects the deals to add to earnings during the
remainder of the current fiscal year.
Shares of Ralcorp closed at $62.17 Friday on the New York
(Reporting by Mihir Dalal in Bangalore; Editing by Roshni