US breakfast cereals manufacturer Post Holdings has made a move into pasta with a deal to buy Dakota Growers Pasta Co. from commodities giant Glencore.
Post, the owner of brands like Raisin Bran and Honey Bunches of Oats, is to pay US$370m for the business. The cereals firm said Dakota Growers was a “leader” in the $5bn North American pasta market, in private-label retail, foodservice and ingredient channels.
Located in Carrington in North Dakota, the company operates durum wheat milling and pasta production capabilities, in addition to production capabilities in New Hope in Minnesota.
Following the transaction, the Dakota Growers business will be managed independently from other Post businesses by its existing management team led by Ed Irion, VP and general manager.
“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,” Post CEO William Stiritz said.
The transaction is expected to close in January, subject to various closing conditions.
The deal is the third acquisition Post has made in 2013. Last month, Post struck a deal to buy protein food and drink maker Premier Nutrition Corporation (PNC) for $180m.
In May, Post also signed a $158m deal to buy cereal, granola and snacks assets owned by Hearthside Food Solutions.
