Ralcorp Holdings Inc has signed a definitive agreement to purchase Western Waffles Ltd, a Canadian-based manufacturer of private label frozen griddle products. Western Waffles' product offerings include frozen toaster waffles, which represent 90% of its total revenues, pancakes, and French toast.
Western Waffles has three manufacturing facilities in Canada and about 370 employees. In 2004, it had net sales of US $75 million throughout the United States and Canada. Approximately 80% of its sales are in US retail and mass merchandise channels. Terms of the transaction have not been disclosed.
The transaction is expected to close by Nov 15, 2005, subject to the customary conditions. Ralcorp will finance the acquisition primarily through borrowings under its existing $150 million committed revolving credit facility.
As a result of the transaction, Western Waffles will become a wholly owned subsidiary of Ralcorp. The acquisition will allow Ralcorp to enter the private label frozen griddle products category. It had been offering branded frozen griddle products sold primarily in foodservice channels.