More dry pasta products will be discontinued by Ebro Foods.
MADRID, SPAIN — With a valuation of €550 million ($649.6 million), private equity company CVC Capital Partners VIII has begun exclusive talks to purchase Madrid-based Ebro Foods’ Panzani dry pasta, couscous, sauces, and semolina units.
CVC would purchase all of the operating assets (including plants and mills) associated with Panzani, Ferrero, Regia, Zakia, and Le Renard brands as part of the agreement. 750 people are employed by the companies connected to the brands, which together brought in over €470 million in sales in 2020.
The headquarters of the acquired company would stay in Lyon, France.
According to Ebro Foods, the fresh pasta and rice businesses—which include the brands Taureau Ailé and Lustucru Selection—will be divided up before any deal with CVC Capital and will therefore stay part of the Ebro Group.
Ebro Foods stated that this divestment is in keeping with its strategic aims for the 2019–21 term and would allow it to better focus its resources on growing and fortifying our premium, fresh pasta, and convenience businesses, in which it is a global leader.
Ebro has sold off several of its dry pasta brands in the last year, including the majority of its US names. In November 2020, the majority of Ebro’s dry goods were sold through its subsidiary Riviana Foods
The pasta business was sold for $242.5 million to TreeHouse Foods. Along with the Skinner, No Yolks, American Beauty, Creamette, San Giorgio, Prince and Light ‘n Fluffy, Mrs. Weiss, Wacky Mac, P&R Procino-Rossi, and New Mill brands, the transaction included a production plant in St. Louis. Then, in a $95 million deal, Riviana sold its Ronzoni dry pasta brand and a dry pasta production plant in Winchester, Virginia, in March 2021 to 8th Avenue Food & Provisions, Inc., a company that is partly owned by Post Holdings, Inc.
Since its founding in 1981, CVC has raised more than $162 billion in commitments from some of the top institutional investors in the world for its credit and private equity programmes. Money under CVC management or advice is invested in more Over 90 businesses with over 450,000 employees and a combined yearly revenue of about $100 billion operate throughout the world. Vivartia, Munchy Food Industries, and GarudaFood are currently part of the company’s portfolio.