Ebro Foods reaches an agreement with TreeHouse Foods to sell part of its dry pasta and noodles business in USA

Madrid, 5th November 2020. Through its US subsidiary Riviana Foods (www.riviana.com), the Ebro Group (www.ebrofoods.es) has arranged to sell certain assets of its dry pasta and noodles business in the USA to American Italian Pasta Company, a TreeHouse Foods, Inc. company (https://treehousefoods.com/).

The business sold comprises several of the Ebro Group’s dry pasta and noodles brands in the USA and the St. Louis plant, while the Ebro Group will preserve its iconic brand Ronzoni®, present throughout the US market, and its Fresno and Winchester plants, the latter being one of the most modern plants in the country.

For the purpose of this transaction, the assets transferred have been valued at USD 242.5million (value of 100% of the business, i.e. before any adjustment for debt and working capital). The transferred business generated revenue of approximately USD 200 million for the twelve-month period ended June 30, 2020. The closing of this transaction would generate an estimated net (after taxes) capital gain in the Consolidated Accounts of the Ebro Group of Euro 27 million.

After this divestment, the Ebro Group will maintain a strong presence in the North American market through its dry and fresh pasta businesses, with the flagship brands Ronzoni®, Garofalo®, and Bertagni®; frozen rice and pasta, through the company Ebrofrost; and the Group will preserve its leadership of the rice market and that of other high value-added products, under the brands Mahatma®, Minute®, Tilda®, Carolina®, Success®, RiceSelect®, etc.

Completion of this transaction is subject to 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.

About TreeHouse Foods, Inc.

TreeHouse Foods, Inc. is a leading manufacturer and distributor of private label packaged foods and beverages in North America. We have nearly 40 production facilities across North America and Italy, and our vision is to be the undisputed solutions leader for custom brands for our customers. Our extensive product portfolio includes snacking, beverages and meal preparation products, available in shelf stable, refrigerated, frozen and fresh formats. We have a comprehensive offering of packaging formats and flavor profiles, and we also offer clean label, organic and preservative-free ingredients across almost our entire portfolio. Our purpose is to make high quality food and beverages affordable to all.

About Ebro Foods

Ebro Foods (www.ebrofoods.es) is the leading Group in the Spanish food sector in terms of turnover, profit, market capitalization and international presence. Ebro is world leader in the rice sector and the second group in the international pasta sector. It has leading brands in each of these sectors, including: Panzani®, Ronzoni®, Skinner®, Healthy Harvest®, American Beauty®, San Giorgio®, Catelli®, Lancia®, No Yolks®, Wacky Mac®, Olivieri®, Bertagni®, Garofalo®, Santa Lucia®, Russo de Cicciano® and Roland Monterrat® in pastas and sauces; Mahatma®, Success®, Carolina®, Minute Rice®, RiceSelect®, Tilda®, Lustucru Selection®, Taureau Ailé®, Oryza®, Bosto®, Reis-Fit®, Riceland®, Danrice®, Risella®, Abu Bint®, Blue Ribbon®, Adolphus®, Comet®, Lassie®, Saludaes®, SOS®, Brillante®, La Cigala®, Sundari® and La Fallera® in the rice sector; Santa Rita® in high value-added ingredients; and Geovita® in the area of pulses, quick-cooking grains and other healthy ingredients.