Madrid, 26th March 2021. Through its US subsidiary Riviana Foods (www.riviana.com), the Ebro Group (www.ebrofoods.es) has arranged to sell its Ronzoni’s dry pasta in USA to the company 8th Avenue Foods & Provisions Inc. ( https://www.8ave.com/).
The business sold comprises the brand Ronzoni® and the plant in Winchester (Virginia).
For the purpose of this transaction, the business has been valued at USD95 million (value of 100% of the business, i.e. before any adjustment for working capital).
The Ronzoni business generated net sales of approximately USD102 million in 2019 and USD115.8 million in 2020.
The closing of this transaction would generate an estimated net capital gain of €25 million in the Consolidated Accounts of the Ebro Group.
After this divestment, the Ebro Group maintains its strong presence in the North American market through its dry and fresh pasta businesses (Garofalo®, Bertagni® and Olivieri®), frozen products (Ebrofrost), rice and other high value products (Carolina®, Mahatma®, Minute®, Success®, Tilda ®, RiceSelect®…).
Completion of this transaction is subject to certain closing conditions and other formalities typical of transactions of this nature.
RBC Capital Markets, LLC is serving as exclusive financial advisor to Ebro Foods S.A.