Ebro Group has entered into exclusive discussions with CVC Capital Partners to acquire its Panzani dry pasta, couscous, sauces and semolina business. The deal is expected to close before the end of the year.
The transaction would include the Panzani, Ferrero, Regia, Zakia and Le Renard brands and all the operating assets, including plants and mills, related to these brands.
The deal is valued at €550 million (US$647 million) and would comprise the sale of 100 percent of Panzani’s share capital. Before the transaction, the fresh pasta and rice businesses, including Lustucru Selection and Taureau Ailé brands, would remain within the Ebro Group.
The business perimeter contemplated in the transaction posted a turnover of €470 million (US$553 million) in 2020 and employs 750 employees. It will remain headquartered in Lyon, France.
Fresh pasta expansion
The transaction remains subject to the French representatives’ information and consultation, customary regulatory approvals, and the General Shareholders Meeting of Ebro Foods.
This divestment is in line with Ebro’s strategic goals for the period 2019 to 2021. It would enable Ebro to concentrate its resources further to strengthen and expand its premium, fresh pasta and convenience businesses.
Rothschild & Co is acting as exclusive financial advisers to Ebro Foods for this transaction. BNP Paribas, Rabobank and Spayne Lindsay are serving as financial advisers to CVC Capital Partners.
Last month, Ebro Foods closed and executed the sale of the Ronzoni dry pasta business and the dry pasta plant in Winchester, US. The transaction was valued at US$95 million (the value of 100 percent of the company).
In July 2019, Ebro Foods received a binding offer from Sweden-based Midsona. This acquisition included the entire share capital of organic food business Alimentation Santé and its subsidiaries Celnat, Vegetalia and Satoki.
