Pasta companies change hands and trade business.
In January 2014, private equity firm Brynwood Partners VII L.P. announced that its new portfolio company, JPC Acquisition Co., acquired Joseph’s Pasta Co. from Nestle Prepared Foods Co. Financial terms of the acquisition were not disclosed. Brynwood has successful experience in the frozen foods market with Richelieu Foods, a frozen pizza and salad dressing manufacturer, and hopes to continue the trend. The Joseph’s closing is one of Brynwood’s five acquisitions from Nestle.
In January 2014, Post Holdings closed the Dakota Growers Pasta Company, Inc. acquisition from Viterra, Inc. As part of the agreement, Post purchased all of the outstanding stock of Agricore United Holdings Inc., the parent company of Dakota Growers. Post expects Dakota Growers to provide approximately $300 million to net sales and approximately $42 million to $46 million of EBITDA on a full-year basis. Post said Dakota Growers will be managed independently from other Post businesses.
In December 2013, Bunge Ltd. completed the acquisition of Grupo Altex S.A. de C.V., a wheat-milling business in Mexico City. As part of the acquisition, Bunge received an expansive product portfolio including semolina for pasta as well as the company’s brands and innovation center. The acquisition took place a little more than a year after Bunge acquired equity stake in Harinera La Espiga S.A. de C.V., a wheat milling business in Mexico, which put Bunge in a leading national position in Mexico. Bunge said it expects about $35 million in EBIT contribution from Grupo Altex in fiscal 2014.
In November 2013, Ebro Foods, S.A. acquired Olivieri Foods, a fresh pasta and sauce company of Canada Bread Company, Ltd. Ebro Foods said the acquisition of Olivieri Foods, a leading pasta and sauce company, consolidated its position as No. 1 in all of the categories the group operates and allowed its entrance into the Canadian pasta and sauce category. Additionally, the Olivieri acquisition will produce synergies with Ebro Foods’ European fresh pasta business.
In October 2013, Seaboard Corp. acquired 50% interest in Belarina Alimentos S/A, a company involved in flour milling, pasta production, and noodle distribution. The other half of the interest is owned by CGG, a Brazilian grain trading company. Seaboard said it’s excited to utilize its longstanding experience in grain processing and improve Belarina’s Brazilian grain processing business and create high quality finished products.
In August 2013, J.M. Smucker Co. joined the pasta segment with the purchase of Enray Inc., a Livermore, Calif.-based manufacturer and marketer of organic, gluten-free grain products. Enray’s products are offered under the TruRoots label, which includes sprouted and non-sprouted grains and cookies in addition to pasta. Smucker said the acquisition strengthens and adds to the breadth of its natural foods business and provides an on-trend product platform.
In July 2012, Nissin Food Holdings Co. bought a 50% stake in pasta maker Bellini Gida Sanayi A.S. from Yildiz Holdings. A.S. Nissin and Yildiz also agreed to raise funds to build instant noodle-making facilities. Nissin expects the demand in Turkey for instant noodle bowls to grow, so the purchase should increase in value in the coming years.
In December 2011, New World Pasta Co., a wholly-owned subsidiary of Ebro Foods, S.A., acquired No Yolks and Wacky Mac dry pasta brands in addition to specific assets from Strom Products Ltd. Ebro said the No Yolks brand is leading the dry pasta noodle segment in the United States and Canada and gives Ebro the means to seal its leadership. The acquisition of the two brands expanded Ebro’s portfolio in the North American market.
In December 2011, Rosina Food Products, Inc., completed the acquisition of assets of the San Rallo Pasta business from Mitsui Foods, Inc. Rosina, a manufacturer of frozen foods, said the acquisition of San Rallo Pasta was consistent with the company’s plan for growth.
In May 2011, Pastificio Rana, an Italian pasta maker, opened its first U.S. production facility at Brewster Creek Business Park in Bartlett, Ill. The Italian pasta maker said it was thrilled to launch in the United States and that the Illinois and Chicago areas were a great place to begin the pasta production process.
In March 2010, Viterra Inc. agreed to acquire Dakota Growers Pasta Company, Inc., Carrington, N.D. As part of the closing, Viterra acquired outstanding shares of common stock and Series D preferred stock of Dakota Growers. Viterra said Dakota Growers aligned with the strategic vision of the company and its pursuit of food processing investments, especially in the pasta segment. Viterra would later sell the business to Post Holdings in January 2014.
In June 2010, Philadelphia Macaroni Co. acquired Campbell Soup Co.’s German Village Products pasta plant in Wauseon, Ohio. Campbell closed its facility before it transitioned rights to Philadelphia Macaroni. As a part of the agreement, Philadelphia agreed to supply Campbell with pasta products.
In July 2010, Ralcorp Holdings, Inc. purchased American Italian Pasta Co. Kansas City-based American Italian Pasta became a subsidiary of Ralcorp as part of the transaction.