ConAgra to acquire US pretzel producer

American packaged foods company ConAgra Foods has agreed to acquire National Pretzel, a US-based pretzel producer, from Brookstone Holdings, as part of its strategy to expand its private-label food business.

Although the terms were not disclosed, ConAgra’s spokesman Jeff Mochal said that the purchase price is more than the acquisition of snack bar producer Elan Nutrition for $103m in 2010.

This acquisition comes nearly two months after Ralcorp, a producer of various food products and ready-to-eat cereal products, rejected a $5.18bn takeover bid by the company.

National Pretzel, based in Lancaster, Pennsylvania, manufactures private-label pretzel rods, sticks, twists and braids, and also owns pretzel brands HK Anderson and Shultz.

The pretzel maker has three manufacturing plants in California and Pennsylvania, with total net sales of nearly $200m.

The acquisition is expected to be completed within 30 days.