One of the largest North American packaged food companies has acquired the largest North American private label packaged foods business. In a transaction worth approximately $6.8 billion ConAgra Foods, Inc. acquired Ralcorp Holdings, Inc., creating one of the largest packaged food companies in North America, with sales of approximately $18 billion annually and more than 36,000 employees. The move also positions ConAgra Foods as the largest private label packaged food business in North America, with combined private label sales of approximately $4.5 billion.

Ralcorp has strengthened its leadership position in private label through recent strategic acquisitions and enhanced customer relationships. According to ConAgra, the two companies’ portfolios are a complementary fit, with very little overlap in terms of offerings. Ralcorp’s private label offerings include cereal, pasta, crackers, jellies and jams, syrups, frozen waffles and more.

Ralcorp’s total annual sales of approximately $4.3 billion also include a branded and commercial/foodservice portfolio. According to industry analysts, private label now represents 18% of sales in the packaged food market in the U.S. and has consistently demonstrated growth in excess of the overall food market over time.