US food company Ralcorp to buy snack manufacturer Medallion foods

St. Louis-based Ralcorp Holdings Inc. signed an agreement to purchase Medallion Foods Inc. for an undisclosed amount, Ralcorp said in a press release. The transaction, expected to close by June 30, will be financed mainly through borrowings under Ralcorp s existing $150 million revolving credit facility, the company said.
Newport, Ark.-based Medallion manufactures value brand and private-label corn-based snack products, including tortilla chips, corn chips and extruded corn products. It employs about 270 employees and had net sales of $42.8 million for the year 2004.
The acquisition will make Medallion a wholly owned subsidiary of Ralcorp and will operate as a part of the Ralston Foods cereal and snack business. It will greatly expand Ralston s presence in the snack food industry, which until now has mainly been through its private label snack mix products. Ralcorp Holdings manufactures private label food products, including cereals, crackers, cookies, dressings, syrups, jellies, sauces, snack nuts and candy.