Despite a few political murmurings south of the border, Viterra has successfully completed its acquisition of Dakota Growers Pasta (DGP) Company.
The $240 million US purchase includes an integrated durum mill and pasta production plant in Carrington, North Dakota, and a pasta production plant in New Hope, Minnesota.
It’s the third-largest producer and marketer of dry pasta in North America and employs about 450 people.
The deal, announced March 10, briefly became a political issue in North Dakota.
The Democratic candidate for agriculture commissioner called for a three-month delay to allow for public discussion about the deal.
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His concern was based on the fact that tax dollars were used to help Dakota Growers start up a co-operative in 1994. However, the commissioner declined to get involved, saying that because Dakota Growers is now a publicly traded company, shareholders can decide its future.
The president of the U.S. Durum Growers Association also expressed concerns, calling it a bad deal for producers in North Dakota and Montana.
The boards of directors of both companies unanimously supported the all-cash transaction.
Viterra president Mayo Schmidt said in a news release that the acquisition will create value for farmers and end-use customers.
“We look forward to building on our reputation for quality and performance with Dakota Growers’ em-ployees,” he said.
The company can mill 1,000 tonnes of durum daily and produce 250,000 kilograms of pasta annually.
