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.
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“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.
