Food maker Ralcorp Holdings Inc. says it has agreed to acquire American Italian Pasta Co. for $1.2 billion and is buying two cracker makers.
But the maker of Post cereals and store branded products also offered third-quarter guidance below expectations due to tough competition in the cereal category.
Ralcorp says it will pay $53 per share for American Intalian Pasta Co. That is a 27 percent premium over the Kansas City pasta maker's closing price of $41.73 on Friday.
Ralcorp also says it acquired North American Baking Ltd., a Canadian maker of private-label specialty crackers, and J.T. Bakeries, which also makes crackers.
Meanwhile, Ralcorp forecast a drop in fiscal third-quarter net income to $1 a share, down $1.31 per share in the prior year. Analysts expect a profit of $1.29 per share.
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