Glencore Xstrata Plc looked to sell its Dakota Growers Pasta Co unit. The company initiated the sell off for its business unit following its US$6 billion purchased deal for Viterra last year. This was stated by three sources that have direct knowledge of the process.
The company worked with Barclays PLC to sell Dakota Growers. The deal was valued between US$300 million and US$400 million. This was said by same sources last Tuesday. Dakota Growers is the third biggest pasta maker in the US. Dakota Growers was acquired by Vieterra last March 2010 for US$240 million.
Glencore spokesperson declined to comment regarding the report. A representative for Barclays was not immediately available to give statements.
Glencore Xstrata Plc sold a number of Vieterra assets to Agrium Inc in order to please regulators. Other assets from Vieterra were sold to CF industries Holdings Inc and Richardson. Dakota Growers could draw interest from companies like ConAgra Foods Inc and Ebro Foods SA said one source.
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