Ebro Foods Agrees To Sell Ronzoni Dry Pasta Business
Ebro Foods has announced that it has agreed to sell its Ronzoni dry pasta business in the USA to 8th Avenue Foods & Provisions Inc through its US subsidiary, Riviana Foods.
The transaction comprises the brand Ronzoni and the plant in Winchester, Virginia.
Ebro added that the business has been valued at US$95 million for this transaction.
Ronzoni generated net sales of approximately USD102 million in 2019 and US$115.8 million in 2020.
The completion of this transaction would generate an estimated net capital gain of €25 million in the consolidated accounts of the Ebro Group.
Ebro will maintain its strong presence in the North American market through its dry and fresh pasta businesses Garofalo, Bertagni, and Olivieri; frozen products, rice and other high-value products, including Carolina, Mahatma, Minute, Success, Tilda, and RiceSelect.
The deal is subject to certain closing conditions and other formalities.
RBC Capital Markets, LLC is serving as exclusive financial advisor to Ebro Foods S.A., the company added.
Ebro Foods reported a 36% jump in annual profit in 2020, with its rice and pasta products particularly popular as coronavirus restrictions forced people to eat more at home.
The company's sales increased 15% in this period to €3.24 billion in an 'exceptional' year, resulting in an annual net profit of €192 million.
Italian pasta company Pastificio Garofalo, in which Ebro Foods holds a 52% share, reported a record 35% increase in turnover to €220 million last year.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.