White & Case has advised Spanish agri-food group Ebro Foods S.A. on its negotiations with CVC Capital Partners VIII for the proposed disposal of several Panzani businesses
CVC Capital Partners and Ebro Group have entered into exclusive negotiations for the acquisition of the dry pasta, couscous, sauces and semolina business of Panzani. The scope of the transaction would include the Panzani, Ferrero, Regia, Zakia and Le Renard brands, and all operating assets (including plants and mills) related to these brands. The perimeter of the business contemplated in the transaction reached net sales of €470 million in 2020, employs 750 employees and will continue to maintain its head office in Lyon, France. It should be noted that the divestment would not have any social impact for the employees of this business.
The transaction is subject to information and consultation with employee representatives in France, regulatory approvals and approval by the General Shareholders’ Meeting of Ebro Foods, S.A. It is expected to be executed before 31 December 2021.
The transaction has been valued at €550 million (value of 100% of the business) and would include the sale of 100% of the share capital of Panzani S.A.S. Prior to the execution of the sale, the fresh produce and rice businesses would be excluded from this company, which, under the leading brands Lustucru Selection and Taureau Ailé, will remain in the hands of the Ebro Group.
This divestment is in line with the Group’s strategic objectives for the period 2019-2021 and would enable Ebro to continue concentrating resources on strengthening and growing its premium, fresh and convenience businesses, in which it is a world leader.
The White & Case team which advised on the transaction was led by partner Nathalie Nègre-Eveillard (Paris) and included partners Yann Utzschneider, Clara Hainsdorf, Estelle Philippi, Alexandre Jaurett (all Paris) and Juan-Manuel de Remedios (Madrid, pictured), counsel Sophie Nguyen, Mickael Rivollier and Orion Berg (all Paris) and associates Baptiste Fondeur, Amandine Grima, Camille Lehuby, Anne Sauvebois-Brunel, Cécilia Grosjean and Michel Courtois (all Paris).