Monterey Pasta Company (Nasdaq: PSTA) yesterday announced the purchase of the Nate's polenta business from Elena's Food Specialties, Inc., of South San Francisco, Calif. for a consideration of $450,000 in cash, plus inventory with a value of $13,000. Additionally, Elena's shareholders could receive an earn-out based upon future sales above a predetermined level. The earn-out will be calculated during the first year of combined operations.