Earlier this week, ConAgra sealed a deal to buy Ralcorp for $5 billion or $90 per share in cash, a premium of 28 percent to Ralcorp shares' closing price on Monday.
The deal will transform ConAgra into the top U.S. producer of store-branded foods – and marks a victory for ConAgra Chief Executive Gary Rodkin, who began pursuing Ralcorp in March 2011 with an offer of $82 per share. Read More: ConAgra Seals Ralcorp Deal With $5 Billion Handshake
But will the bet pay?
Jim Cramer thinks it will.
"I've liked ConAgra ever since earlier this year when it became clear that commodity cost inflation was moderating," said the Mad Money host. "And with this acquisition, ConAgra just gave us another huge reason to own the stock."