Land O’Lakes Agrees to Buy Purina Mills

Land O’Lakes Inc., a farmer-owned dairy producer, agreed to buy Purina Mills Inc. for about $230 million in cash, to create the largest animal-feed maker in North America.

Privately held Land O’Lakes, based in Arden Hills, Minn., agreed to pay $23 for each Purina Mills share, or 19% more than the closing price Friday for the maker of feeds for animals ranging from goats to guinea pigs. Land O’Lakes would assume about $130 million in debt, said Purina Chief Executive Brad Kerbs.

Shares of St. Louis-based Purina Mills rose $2.89 to close at $22.19 on Nasdaq.