Milling & Baking News - June 29, 2010 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS JUNE 29, 2010 / FEATURE Ralcorp broadening into pasta with $1.2 billion acquisition of AIPC Pizza positioning Acquisitions, value offerings and emerging trends have pizza makers posturing for shelf space Story on Page 32 LATE NEWS Driscoll named Hostess c.e.o.; Jung retiring IRVING, TEXAS - Brian J. Driscoll has joined Hostess Brands Inc. as chief executive officer, effective immediately. He succeeds Craig D. Jung, who is retiring. Mr. Jung had been c.e.o. since 2007. Mr. Driscoll has more than 30 years of experience in the food and beverage industry, most recently as president of sales, customer service and logistics at Kraft Foods Inc. Earlier, he held various posts at Nabisco from 1995 to 2000, including as senior vice-president of biscuit direct-store delivery sales and customer service. Prior to Nabisco he held a variety of key executive roles in sales and general management at Nestle Continued on Page 8 ST. LOUIS - The board of directors of Ralcorp Holdings, Inc. on June 21 approved a definitive merger agreement under which Ralcorp would acquire all of the outstanding shares of American Italian Pasta Co.'s common stock for $53 per share, for a total purchase price of $1.2 billion. Ralcorp said it will fund the transaction, which is expected to close during Ralcorp's fourth fiscal quarter (ended Sept. 30), through a combination of cash on hand, borrowings under credit facilities, a bridge facility it has received a commitment letter for, and other debt or equity arrangements. Once acquired, AIPC will become a wholly-owned subsidiary and will operate as an independent division of Ralcorp, said Kevin J. Hunt, co-chief executive officer and president of Ralcorp. Shares of AIPC surged $10.93, or 26%, on June 21, closing at $52.66. The acquisition would significantly expand Ralcorp's product offerings, bringing the company a presence in the pasta segment while continuing the company's recent trend of acquiring well-known brands, including the August 2008 acquisition of the Post cereal business from Kraft Foods Inc., Northfield, Ill. "We are excited about the addition of AIPC to the Ralcorp family," Mr. Hunt said. "This transaction strengthens our Continued on Page 10 Food Ingredient Solutions ® The vitamin D opportunity Baking industry may capitalize on expected increase in daily levels S ources say recommended daily levels of vitamin D intake may increase, perhaps even double, when an Institute of Medicine committee releases its findings later this year. Such news may have consumers seeking ways to increase their vitamin D intake, which in turn may present marketing opportunities for grain-based foods. Current adequate intake (A.I.) levels for vitamin D are 200 international units (I.U.) for people up to age 50, 400 I.U. for people age 51-70, and 600 I.U. for people over age 70. The Institute of Medicine set those levels in 1997. Since then, some scientific studies have shown people are failing to meet those levels while other studies have found health benefits from vitamin D beyond healthy bones. "It is so popular because there is good science behind it," said Ram Chaudhari, senior executive vicepresident and chief scientific officer for Fortitech, Inc., Schenectady, N.Y. "More and more scientific evidence shows how good vitamin D is." Wendy Dahl, an assistant professor at the University of Florida in Gainesville, added, "The need for it goes so far Continued on Page 25

Table of Contents for the Digital Edition of Milling & Baking News - June 29, 2010


Milling & Baking News - June 29, 2010