Post Holdings, Inc. POST
today announced it has signed a definitive agreement to acquire Dakota Growers
Pasta Company, Inc. ("Dakota Growers") 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,
North Dakota, where it has durum wheat milling and pasta production
capabilities. Dakota Growers also has production capabilities in New Hope,
Minnesota.
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 Chief Executive Officer. "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 acquisition will be funded by a combination of cash on hand
and up to $200 million in committed debt financing. On a full year basis, the
transaction is expected to contribute approximately $300 million to net sales
and approximately $42-$46 million of EBITDA.
The Company anticipates completing the transaction in January 2014, subject to
various closing conditions including the expiration of waiting periods
required under antitrust laws and the delivery of audited financial statements
for the Dakota Growers business.
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