Viterra deal

[broker]

Viterra acquires Dakota Growers Pasta Company Inc.
Leader-Post staff May 5, 2010 5:26 PM REGINA — A deal that involves Regina-based Viterra Inc. acquiring a leading North American producer of dry pasta products has been closed.

Viterra's acquisition of Dakota Growers Pasta Company Inc. means Viterra will now operate pasta production plants in Carrington North Dakota as well as in New Hope, Minnesota.

That deal wll represent a total "enterprise value'' of $240 million, according to a news release issued by Viterra Wednesday.

Mayo Schmidt, the president and CEO of Viterra, said the company is pleased to have now finalized the deal.

"Joining our businesses is an excellent opportunity to create further value for our farmers and end use customers,'' Schmidt said.

"We look forward to building on our reputation for quality and performance with Dakota Grower employees,'' Schmidt said.

The deal is designed to enhance Viterra's milling capacity and to give it more leverage in its relationships with major food companies.

The acquisition announced Wednesday is an another example of a strategy by Viterra to expand and diversify.

The company has extensive operations in Western Canada, Australia and New Zealand. Its growing operations also extend to several Asian locations, Switzerland, and the United States.

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What is everyone's opinion on this?

[seabass]

What a miracle come back from the depths of almost bankruptcy. Where the heck is all the money coming from? Good on them as long as things don't go for sh*t.

[Choice2U]

Some companies help to build an industry while others just buy successful businesses already operating in that industry. SWP/Viterra has never really added to the ag industry as shown by this announcement as is similar to past ventures such as Robins Donuts, Prairie Malt, etc. I will give them credit for the Manitoba plant they brought on stream which had been a failed venture (can't remember the name).

[Choice2U]

If I'm off base on this one, please let me know. Let's start a list of operations/business units that they created from an idea.

[Burbert]

Des guys ran the Albertie Pool into the ground, Angrisnor, Yoknited G Growin, then AngrisnorUnknited. What else kin yous expect. Same tired old faces whne yous du business there each and evry time. Must have a great line of credit, cause dys soo big and impertant in the grain world. Guess why they are still operating, no fear though ultimately they fail, big time, den look fer a bailout, like their cousins got. Stook market will then report, Viagra good, Viterra sucks.......

[sjc]

Its scary all we will be left with in 5 years are multi national companies. The independents will be for the most part CPS dealers (agrium) all that will be left are local Co-ops. After looking at UFA balance sheet how long can it survive? Even the Co-ops are buying fertilizer from Agrium so who is left? Fna? I don't hold any hopes for them