A day after receiving approval from federal regulators, Swiss-based Nestle SA on Wednesday completed its $ 10.3 billion purchase of pet-food leader and St Louis institution Ralston Purina Co.
The 107-year-old Ralston, which was started as a horse-feed business in 1894 by William Danforth, joins the late Trans World Airlines Inc as the latest St Louis company to be absorbed by a rival. But unlike the long-struggling TWA, swallowed out of bankruptcy court this year by Amr Corp's American Airlines, Ralston is a healthy concern targeted by Nestle for its dormant position in the dry pet food market.
This company will continue to have a huge payroll in this community, said Patrick HcGinnis, Ralston's president and CEO who will hold the same position at newly created Nestle Purina Pet Care Co. This company will continue to be a tremendous taxpayer in this community. It will be a corporate citizen and charitable contributor in this community, as it has been in its 107-year history. Nestle Purina Petcare, the combination of Ralston and Nestle's Pet business, will house its North American business in St Louis at Ralston's headquarters south of downtown, known affectionately as checkerboard square.
Nestle is paying $ 33.50 per Ralston share, a 36 per cent premium above the price of shares when the deal was announced in January. Annual revenues of Nestle Purina Petcare, based on Ralston and Nestle combined revenues in 2000, are $ 3.7 billion in North America and $ 6.3 billion worldwide. Bureau Report