The transac­tion is sub­ject to in­for­ma­tion and con­sul­ta­tion

Ebro Foods Sells Panzani For 550 Million Euro To CVC Capital Partners VIII

Antonio Hernández Callejas, Ebro.
Antonio Hernández Callejas, Ebro.

Ebro Foods has re­ceived a bin­ding offer from CVC Capital Partners VIII and has de­cided to grant the latter ex­clu­sive right to sell the Panzani® dry pasta, se­mo­lina, cous­cous and sauces bu­si­ness. The transac­tion is sub­ject to in­for­ma­tion and con­sul­ta­tion with em­ployee re­pre­sen­ta­tives in France, re­gu­la­tory ap­pro­vals and ap­proval by EBRO’s General Meeting of Shareholders.

The transaction would materialise through the sale of 100% of the share capital of Panzani SAS. Given that this company is currently developing other businesses which would not be divested (the fresh produce and rice businesses), prior to the execution of the sale there would be an operation to exclude these activities which would remain in EBRO’s hands.

The business includes the Panzani®, Ferrero®, Regia®, Zakia® and Le Renard® brands, the Vitrolles, La Montre and Nanterre plants and the Gennevilliers, St. Just and “Littoral” mills, and employs approximately 750 employees. The business had net sales of EUR 470 million in 2020 and adjusted operating profit (before depreciation, amortisation, depreciation and non-recurring items) of EUR 57 million. The business has been valued for the purposes of the transaction at EUR 550 million (value of 100% of the business, i.e. before any adjustment for debt and working capital).

The result of this divestment is estimated to generate a gross capital gain for EBRO of EUR 91 million. This transaction, once approved by EBRO’s General Meeting of Shareholders, is expected to be executed by 31 December 2021. The operation would allow EBRO to continue to focus its resources on strengthening its premium, fresh and convenience businesses, in which it is a world leader.

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