Post Foods, a US-based cereal brands manufacturer, has agreed to acquire Dakota Growers Pasta from Viterra, a wholly-owned subsidiary of Glencore Xstrata, for $370m in cash.
Dakota Growers is located in Carrington, North Dakota, where it operates durum wheat milling and pasta production sites; it also has production capabilities in New Hope, Minnesota.
Following the acquisition, the business will be managed independently from other Post Holdings businesses by its existing management team led by vice president and general manager Ed Irion.
The acquisition will be financed through a combination of cash on hand and up to $200m in committed debt financing.
Post chairman and CEO William P. Stiritz said: "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."
The transaction, which is subject various closing conditions, is expected to be completed in January 2014, contributing about $300m to net sales and $42m - $46m in EBITDA.
