Spanish rice and pasta manufacturer Ebro Foods has reached an agreement to sell their pasta brands in Germany to Italy's Newlat Group. Ebro Foods currently operates in Germany under the brands Birkel and 3Glocken.
According to a statement released today by Ebro Foods, the agreement will be completed by the end of 2013 with the transfer of all the assets corresponding to that business: the brands, the industrial facilities, the land on which they are built and existing stocks.
The Ebro Group will receive of about €21.5 million in the deal plus 50% of EBITDA generated by the German business sold during the next five years, an amount which is expected to produce an additional €7.5 million.
"This transaction represents further progress in Ebro Foods' current strategic plan, which aims, among other goals, to concentrate efforts and resources in the business areas in which it is able to maintain or increase the profitability ratios hitherto achieved by the company," Ebro Foods said.
The Birkel business will from the end of this year have an opportunity to develop further through its incorporation in Newlat Group, which has a strong presence on the German pasta market through the brand Buitoni. Earlier this year, Ebro Foods bought Olivieri Foods from Canada bread for $120 million.
© 2013 - European Supermarket Magazine by Enda Dowling
