Glencore Xstrata to sell Dakota Growers Pasta Co to Post Holdings for $370 mn
17 September 2013
Commodities and mining giant Glencore Xstrata Plc yesterday agreed to sell Dakota Growers Pasta Company to Post Holdings Inc for $370 million, which came into its portfolio last year following its $6.2-billion acquisition of Canadian grain handler Viterra.
Calgary-based Viterra had acquired Dakota Growers in 2010 for $240 million.
Based in Carrington, North Dakota, Dakota Growers is the third largest manufacturer of dry pasta products in North America, with Dreamfields Pasta being its flagship product.
It operates one of the largest durum mills in North America and primarily supplies the ingredient, to food service and private label retail markets.
The company owns an integrated durum mill and pasta production plant in Carrington, and a pasta production plant in Minnesota.
Its durum milling capacity is 1,000 metric tonnes a day, with an annual pasta output of 560 million pounds processed through 14 production lines.
Baar, Switzerland-based Glencore had sold some of Viterra's Canadian business to fertiliser company Agrium, grain handling firm Richardson International and CF Industries, for $3.5 billion in order to get Canadian regulators approval for the deal.
Glencore Xstrata expects the sale to close in January 2014.