Ralcorp Holdings to buy Sara Lee’s refrigerated dough business

Ralcorp Holdings Inc. has agreed to buy Sara Lee Corp.'s North American private-label refrigerated dough business for about $545 million, in a deal that will help the company expand its margins after proposing to spin off its Post Foods business.

Last month, Ralcorp detailed the spin-off plans for Post, which manufacturers Honey Bunches of Oats and Post Raisin Bran. The company twice rejected a buyout offer of $4.9 billion from ConAgra Foods.

For Sara Lee, the sale is part of its move to split its international coffee and tea business from its North American meats business. Sara Lee recorded net sales of more than $300 million for the fiscal year ending July 2010. The dough business represents roughly 3 percent of the company's annual sales.