Post Inks $370 Million Deal to Buy Dakota Growers Pasta Co.

ST. LOUISPost Holdings, Inc., has signed a definitive agreement to acquire Dakota Growers Pasta Company, Inc., from Viterra, Inc., a wholly-owned subsidiary of Glencore Xstrata plc, for $370 million in cash. The transaction is anticipated to close in January 2014, subject to various closing conditions.

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. The company 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 Post Chairman and Chief Executive Officer William P. Stiritz. "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."

Post Holdings has been hot on the acquisition trail this year.

In August 2013, Post signed a definitive agreement to acquire Premier Nutrition Corporation for $180 million in cash. The acquisition provides Post a platform in the growing active nutrition and supplements businesses. In May, Post completed the previously announced acquisition of the branded and private-label cereal, granola and snacks business of Hearthside Food Solutions, a portfolio company of Wind Point Partners.

In February 2012, Ralcorp Holdings, Inc., separated itself from Post Holdings for approximately $900 million and 20% of outstanding shares of Post Foods when it completed its spin-off of the cereal maker.