ConAgra Foods: Valuing a Potential Recipe for Success
White, S., C. Trejo-Pech, and M. Noguera.  2017.  International Food and Agribusiness Management Review, 21(5):595-608. https://doi.org/10.22434/IFAMR2016.0182.

Abstract:
In the fall of 2012, ConAgra Foods had the opportunity to become the largest private packaged food producer in North America. ConAgra was considering the purchase of Ralcorp, a large private brands manufacturer. This could be a strategic step for ConAgra, since the potential acquisition seemed aligned to the firmís strategy for growth. Ralcorp, with revenue and assets representing about one third of ConAgraís, was large enough to impact ConAgraís business strategy and financial structure. This case study provides both firm level and private brands industry data to assess the potential acquisition. Ranges of implied stock prices could be estimated by using Discounted Cash Flow Valuation, Comparable Multiples, and Comparable Merger and Acquisitions Transaction analysis. A comparison of implied stock prices and actual stock price by the time of the case leads to the topic of control premium paid during acquisitions and to potential enterprise synergies.