ConAgra to Buy Ralcorp for $90 a Share (Update 1)

Updated with further terms of the ConAgra/Ralcorp merger agreement

NEW YORK ( TheStreet) -- ConAgra Foods ( CAG) said Tuesday it agreed to buy Ralcorp Holdings ( RAH) for $90 a share in cash, or about $5 billion.

The purchase price is a 28.2% premium to Ralcorp's closing price Monday of $70.23.

Ralcorp shares were soaring in premarket trading Tuesday, up 26.7% to $88.99.

The total value of the deal, including assumed debt, is $6.8 billion.

A combined ConAgra/Ralcorp will have annual sales of about $18 billion, the companies said in a statement Tuesday.

-- Written by Joseph Woelfel

>To contact the writer of this article, click here: Joseph Woelfel

>To submit a news tip, send an email to:

If you liked this article you might like

Watch Out For the Dominoes That Fall: Cramer's 'Mad Money' Recap (Wed 9/20/17)

Cramer: Dominoes Are in Play Today

Kraft Heinz Cooks Up Earnings Beat but Could Still Use Unilever

It's the CEOs, Stupid: How Meager Investment Hamstrings U.S. Economy