Post Holdings Inc. has signed a definitive agreement to acquire Dakota Growers Pasta Co. Inc. from Viterra Inc., a wholly-owned subsidiary of Glencore Xstrata plc. Dakota Growers is a leader in the approximately $5 billion North American pasta market, with leadership positions in the private label retail, foodservice, and ingredient channels. The company is located in Carrington, N.D., where it has durum wheat milling and pasta production capabilities. Dakota Growers also has production capabilities in New Hope, Minn.
The Dakota Growers business will be managed independently from other Post Holdings businesses by its existing management team led by Ed Irion, Vice President and General Manager.
“I am delighted to welcome Ed, his team, and the Dakota Growers associates into the growing family of Post Holdings’ companies,” said William P. Stiritz, Post’s Chairman and CEO. “With Dakota Growers, Post continues to expand its portfolio into segments of the overall food industry where it sees opportunities to grow and diversify its strong cash flow.”
Terms of the deal call for $370 million in cash to be paid at the time of closing, on a cash-free, debt-free basis, subject to a working capital adjustment. The company anticipates completing the transaction in January 2014, subject to various closing conditions.