Associated British Foods today (15 December) confirmed that it has reached an agreement to acquire Azucarera Ebro, the Spanish sugar business of Ebro Puleva, for EUR385m (US$518.7m).
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The full consideration will be paid in cash, with EUR20m of the payment to be deferred over two years, ABF revealed.
Azucarera Ebro is a leading Iberian sugar producer, supplying 50% of the region’s sugar.
The acquisition is expected to strengthen the existing EU sugar operations of British Sugar, ABF’s sugar business, the company said.
“The acquisition of Azucarera Ebro is an exciting development for British Sugar. The business enjoys a leading position in Iberia supported by modern beet factories and a new cane refinery that will benefit from our partnership with Illovo Sugar,” ABF CEO George Weston said.
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By GlobalDataThe acquisition is expected to be earnings accretive for ABF in fiscal 2010. Azucarera Ebro generated pro-forma revenue of EUR586m and operating profit of EUR44m in fiscal 2007.
The deal, which remains subject to regulatory approval, is expected to be completed early next year.
