Spain’s Ebro Meals is in unique talks with private-equity agency CVC Capital Companions to dump its Panzani dried pasta and sauces enterprise in France.
The proposed deal ends earlier hypothesis that surfaced in March, suggesting CVC was teaming up with native peer Lustucru. However the investor is now going it alone, coming into a deal for the dried pasta, couscous, sauces and semolina operations in Panzani valued at EUR550m (US$648.4m), in response to an announcement this morning (26 July) from Ebro.
Ebro mentioned the transaction won’t have any “social impression” on the 750 Panzani workers in France and is predicted to shut earlier than 31 December if permitted by representatives of the employees, its personal shareholders and regulatory our bodies.
The cope with CVC contains the Panzani, Ferrero, Regia, Zakia and Le Renard manufacturers, and related manufacturing vegetation and mills. Nonetheless, the contemporary pasta and rice companies below the Lustucru Choice and Taureau Ailé manufacturers can be separated and stay with Ebro.
Ebro has already offered off a variety of dried pasta property because it seeks to focus sources round its contemporary pasta and comfort companies. Final December, a deal was accomplished with TreeHouse Meals within the US for the Spanish agency’s Riviana Meals pasta enterprise, together with the Prince, Creamette and Skinner manufacturers.
It additionally agreed in 2020 to promote its Catelli dried pasta enterprise in Canada to Italian counterpart Barilla. Then in February this yr, Ebro mentioned it was “evaluating the choice” of promoting its Ronzoni dried pasta operations. That deal materialised in June, with eighth Avenue Meals & Provisions, a division of US-based Submit Holdings.
In its assertion at the moment, Ebro mentioned the Panzani enterprise it plans to dump to CVC generated a turnover of EUR470m final yr.