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: tips@thestreet.com.

If you liked this article you might like

Millennials Are Hungry for Snacks, Say Top CEOs at CAGNY

Millennials Are Hungry for Snacks, Say Top CEOs at CAGNY

The Bottom? Not So Fast: Cramer's 'Mad Money' Recap (Tuesday 2/6/18)

The Bottom? Not So Fast: Cramer's 'Mad Money' Recap (Tuesday 2/6/18)

Activists Third Point, Jana Could Push for a Pinnacle Sale

Activists Third Point, Jana Could Push for a Pinnacle Sale

Stocks Close Higher as Wall Street Dissects New Tax Laws

Stocks Close Higher as Wall Street Dissects New Tax Laws

Stocks Trade Higher After Passage of U.S. Tax Law

Stocks Trade Higher After Passage of U.S. Tax Law