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Post expects to use up to $200 million of debt for Dakota Growers buy
By Sara Rosenberg
New York, Sept. 16 - Post Holdings Inc. plans on using up to $200 million in committed debt financing to help fund its acquisition of Dakota Growers Pasta Co. Inc. from Viterra Inc., according to a news release.
Other funds for the transaction will come from cash on hand.
Under the agreement, Dakota Growers is being bought for $370 million in cash to be paid at the time of closing, on a cash-free, debt-free basis, subject to a working capital adjustment.
On a full year basis, the transaction is expected to contribute about $300 million to net sales and around $42 million to $46 million of EBITDA.
Closing is expected in January 2014, subject to various conditions including the expiration of waiting periods required under antitrust laws and the delivery of audited financial statements for the Dakota Growers business.
Post is a Battle Creek, Mich.-based food company. Dakota Growers is a Carrington, N.D.-based pasta company.
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