Viterra Inc., Calgary, Alberta, and Carrington, N.D.-based Dakota Growers Pasta Co. Inc. announced their signing of a definitive merger agreement whereby a subsidiary of Viterra will acquire all of the outstanding shares of Dakota Growers, a producer and marketer of dry pasta products for the private label, industrial and foodservice markets. The all-cash transaction, structured as a tender offer followed by a merger of a Viterra subsidiary and Dakota Growers, was unanimously approved by the boards of directors of both companies.
The transaction represents a total enterprise value of US$240 million, the companies said, which includes equity value and anticipated net cash/debt at closing, subject to certain adjustments for transaction costs and other closing adjustments.
"We are very pleased to announce our agreement with Dakota Growers,” said Mayo Schmidt, Viterra's president and CEO. “The histories of our companies are built upon the strength of our solid relationships with our farmers and customers. Our offer comes with numerous benefits for both organizations and aligns well with Viterra's strategic vision to increase investment in food processing.”
