Cereals giant Post Holdings has made its fourth major acquisition since it was spun off from Ralcorp last year, splashing out $370m for private label pasta maker Dakota Growers Pasta Co.
The transaction - set to close in January - comes hot on the heels of Post's $180m deal to buy Joint Juice and Premier Protein maker PNC in August, its $158m deal to acquire cereal and granola brands from Hearthside Food Solutions in June; and the acquisition of natural and organic cereal maker Attune Foods in January.
Post Holdings (Post Foods) - which has its corporate HQ in St. Louis, MO and makes well-known cereal brands including Great Grains, Pebbles, Honey Bunches of Oats and Grape-Nuts - is buying Dakota from Viterra, a subsidiary of Glencore Xstrata.
Dakota will be managed independently from Post’s other businesses and will continue to be run by its existing senior management team led by vice president and general manager Ed Irion.
Based in Carrington, North Dakota, where it has durum wheat milling and pasta production capabilities, Dakota Growers also has production facilities in New Hope, Minnesota.
On a full year basis, the deal is expected to contribute around $300m to net sales and $42-46 million of EBITDA (earnings before interest, tax, depreciation and amortization), said Post in a statement.