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July 26, 2021

Ebro Foods in talks to sell Panzani dried pasta business to CVC

Ebro Foods has also recently sold a clutch of dried pasta assets in North America.

Spain’s Ebro Foods is in exclusive talks with private-equity firm CVC Capital Partners to offload its Panzani dried pasta and sauces business in France.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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The proposed deal ends earlier speculation that surfaced in March, suggesting CVC was teaming up with local peer Lustucru. But the investor is now going it alone, entering a deal for the dried pasta, couscous, sauces and semolina operations in Panzani valued at EUR550m (US$648.4m), according to a statement this morning (26 July) from Ebro.

Ebro said the transaction will not have any “social impact” on the 750 Panzani staff in France and is expected to close before 31 December if approved by representatives of the workers, its own shareholders and regulatory bodies.

The deal with CVC includes the Panzani, Ferrero, Regia, Zakia and Le Renard brands, and associated manufacturing plants and mills. However, the fresh pasta and rice businesses under the Lustucru Selection and Taureau Ailé brands would be separated and remain with Ebro.

Ebro has already sold off a number of dried pasta assets as it seeks to focus resources around its fresh pasta and convenience businesses. Last December, a deal was completed with TreeHouse Foods in the US for the Spanish firm’s Riviana Foods pasta business, including the Prince, Creamette and Skinner brands.

It also agreed in 2020 to sell its Catelli dried pasta business in Canada to Italian counterpart Barilla. Then in February this year, Ebro said it was “evaluating the option” of selling its Ronzoni dried pasta operations. That deal materialised in June, with 8th Avenue Foods & Provisions, a division of US-based Post Holdings.

In its statement today, Ebro said the Panzani business it plans to offload to CVC generated a turnover of EUR470m last year.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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