Ebro streamlines portfolio

Ebro streamlines portfolio

Spanish rice-to-pasta firm Ebro Foods is to sell its German pasta business to Italian rival Newlat Group.

The assets includes the Birkel and 3Glocken brands. Newlat will pay EUR21.5m (US$29.6m) plus 50% of the EBITDA generated by the brands over the next five years. Ebro estimated that would total an additional EUR7.5m per annum.

"This transaction represents further progress in Ebro Foods' current strategic plan, which aims, among other goals, to concentrate efforts and resources in the business areas in which it is able to maintain or increase the profitability ratios hitherto achieved by the company," the company said.

Newlat is already present in the German pasta market under the Buitoni brand. The deal is expected to close at the end of 2013.

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Ebro Foods reaches agreement with Newlat Group to sell its german pasta business
Ebro Foods, S.A. (www.ebrofoods.es) and Newlat Group, S.A. have reached an agreement for the sale of Ebro's pasta business in Germany, where it operates under the brands Birkel® and 3Glocken®.

The agreement will foreseeably come to fruition at the end of 2013 with the transfer of all the assets corresponding to that business: the aforesaid brands, the industrial facilities, the land on which they are built and existing stocks.

With this  transaction the Ebro Group receives revenues of about 21.5 million euros plus 50% of EBITDA generated by the business sold during the next five years, amount is estimated at an additional 7.5 million.

This transaction represents further progress in Ebro Foods' current strategic plan, which aims, among other goals, to concentrate efforts and resources in the business areas in which it is able to maintain or increase the profitability ratios hitherto achieved by the company. The Birkel business will have an opportunity to develop further through its incorporation in Newlat Group, which has a strong presence on the German pasta market through the brand Buitoni®

 

Original source: Ebro Foods