Hain Celestial has sold its Tilda rice brand to Ebro Foods for $342 million, as it continues to simplify its portfolio of brands.
Tilda, which Hain Celestial bought in 2014, is expected to contribute approximately $200 million in net sales and $25 million of adjusted EBITDA for the fiscal year ending 30 June 2019.
Hain Celestial said it expects to use a portion of the proceeds to pay down debt and is evaluating distribution alternatives for the remainder to maximise value to shareholders.
“We are pleased to complete the strategic sale of Tilda, which is consistent with our transformational plan to simplify our portfolio, strengthen our core capabilities and expand margins and cash flow,” said Mark Schiller, Hain Celestial CEO.
“Tilda has been a strong business for us, primarily in the United Kingdom, and under new strategic ownership, we expect the brand to continue to thrive. We believe this transaction represents a significant premium to a majority of other European food and global rice and pasta industry transactions over the last several years.
“In addition, this divestiture will enable us to reduce our exposure to marketplace disruption associated with the uncertainty of Brexit and additional future potential foreign currency fluctuations.”
In May, Hain Celestial announced the sale of its WestSoy tofu, seitan and tempeh unit as well as its Hain Pure Protein business. The company has retained its WestSoy plant-based beverage unit.
Last month, Ebro Foods agreed to offload its Alimentation Santé organic foods business to Sweden-based Midsona for €57.5 million. Alimentation Santé specialises in organic and plant-based foods, and its Celnat, Vegetalia and Satoki brands hold strong market positions in France and Spain.
© FoodBev Media Ltd 2022
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