Post To Buy Dakota Growers Pasta Co.

(RTTNews) - Post Holdings, Inc. (POST) said Monday that it has agreed to buy Dakota Growers Pasta Co., Inc. from Viterra Inc., a wholly-owned subsidiary of Glencore Xstrata plc, for $370 million in cash, subject to a working capital adjustment.

The deal, which is anticipated to be completed in January 2014, is expected to contribute about $300 million to net sales and about $42-$46 million of EBITDA on a full-year basis..

Dakota Growers is a leader in the about $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.

The acquisition, excluding transaction, integration and purchase accounting related costs, is expected to be immediately accretive to Post's results; the ultimate earnings per share impact will be subject to finalization of the allocation of the purchase price.