The transaction is part of the Company’s divestment policy in respect of non-strategic businesses
Madrid, 14 October 2005. Ebro Puleva has reached an in-principle agreement with a Canary Islands-based group for the sale of its subsidiary Catesa Foods, S.L. Enforcement of such transaction is subject to a Due Diligence process which should be concluded by the first week of January 2006.
The agreed price amounts to ¿31,5 million that will be paid in two instalments: around 50% within year 2005 and the remaining amount upon completion of the Due Diligence process. This divestment transaction will represent an added value of ¿15 million for Ebro Puleva Group.
Catesa Foods S.L. is the Group¿ subsidiary dealing with the operation, culture and trading of tropical fruits, flowers and ornamental plants at Tenerife Island. The company bases its operation on a number of rural properties of about 200 hectares located on the Northern part of the island with an average staff of 120 employees. Catesa Foods S.L. has been contributing to the Group¿s results with an Ebitda of around ¿0,4 million.
A further progress in our strategic plan
This transaction fits into Ebro Puleva¿ strategic plan, whose main objectives are to assemble all efforts and resources relating to its main activities, to optimise structure costs, to disinvest in non-strategic businesses and in those premises that are not business-related, and to decrease its debt, with the aim to establish a solid base for the next growth phase.