Nestle nears deal to buy Ralston Purina

Monday, Jan. 15, 2001 | 11:20 a.m.

THE ASSOCIATED PRESS

NEW YORK -- Nestle SA, the Swiss food manufacturer whose products include the Friskies and Alpo pet food brands, is close to a deal to buy Ralston Purina Co., maker of Purina Dog Chow, for $10 billion in cash, the Wall Street Journal reported.

It is believed that Nestle is offering nearly $33 for each share of Ralston, roughly 34 percent above the St. Louis-based company's closing stock price Friday of $24.63 on the New York Stock Exchange.

Ralston controls 27 percent of the $4.3 billion dog-food market, while Nestle accounts for roughly 12 percent, the Journal reported. Ralston is also a leader in cat food sales, holding 33 percent of the $2.6 billion market, with Nestle making up for an additional 13 percent.

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