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The general manager of Dakota Growers Pasta, an integrated durum wheat milling and dry pasta company headquartered in Carrington, North Dakota, was considering acquiring additional pasta capacity. The board of directors planned to discuss the acquisition in light of changes in the pasta industry that included entry of several new firms and exit of older firms, large changes in capacity, depressed farm economy, disease problems that reduced the supply of high quality durum wheat, and a decrease in consumption. Due to its co-operative organizational structure, equity would come from the company''s owners who were producers of durum wheat. He is faced with the challenge of determining the acquisition''s impact on future profitability, the net effect on branded and private label pasta market share in the retail, ingredient, and food service market segments, and financing the acquisition.