ST. LOUIS (AP) — Post Holdings Inc. said Monday that it is buying Dakota Growers Pasta Company Inc. from Viterra Inc. for $370 million to expand its food offerings.
The deal adds to the cereal maker's list of recent acquisitions. It acquired nutritional supplement maker Premier Nutrition Corp. in August and the cereal, granola and snacks business of Hearthside Food Solutions in May.
Post, based in St. Louis, makes cereals such as Grape-Nuts, Great Grains and Honeycomb. Dakota Growers, based in Carrington, N.D., sells private label pasta. It also has production capabilities in New Hope, Minn.
Company Chairman and CEO William Stiritz said that the deal will further expand Post's portfolio into segments of the food industry were it sees opportunities to grow.
Post expects to complete the deal in January. It will be financed using cash on hand and as much as $200 million in debt financing. The company said the deal will increase its revenue by $300 million for the full year.
Shares of Post increased $1.56, more than 3.7 percent, to $43.51 in midday trading. Its stock is at the upper-end of its 52-week trading range of $28.62 to $49.32.