SOS Corporacion Alimentaria is to sell its rice division to Spanish food group Ebro Foods for EUR195m (US$261m).

The deal, announced today (25 November), could also lead to Ebro taking a 10% stake in SOS, which is selling EUR200m worth of shares to help restructure its debt and fund expansion.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

Announcing the sale of the rice business, the SOS board of directors said the cash will help the company reduce its debt, as well as concentrate on the development of its core business, olive oil.

The SOS board said the group will also look to improve its competitive position in its main markets of Spain, Italy and the US, as well as the emerging markets of Brazil, China and Japan.

Ebro said SOS’s rice division will “complement” its own rice business in Spain and the US, as well as “opening doors” to the Dutch market and “reinforcing” its position in other European markets and the Middle East.

If the deal is approved by SOS’s creditors, Ebro will also pay EUR50m to take part in a capital hike that SOS is carrying out, giving it a stake of around 10% in the olive oil maker.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

This will enable Antonio Hernandez, president of Ebro, and Demetrio Carceller, director of Ebro, to join the board of SOS.

Hernández said: “This is a wonderful opportunity to acquire an interest in a company which, apart from being world leader in its sector, operates in markets with enormous growth prospects. We believe the SOS Group has potential to further improve its productivity and efficiency, continuing the trend it has followed in recent months, despite operating within a restrictive financial framework and in a generally adverse economic context.”

The transaction is expected to close during the first months of 2011.

Just Food Excellence Awards - The Benefits of Entering

Gain the recognition you deserve! The Just Food Excellence Awards celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving food industry advancements. Don’t miss your chance to stand out—submit your entry today!

Nominate Now