SEPI-backed Ebro buys rice producer Tilda for $342m

Alessia Argentieri
29 August 2019

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Ebro Foods, a Spanish rice and pasta producer backed by Sociedad Estatal de Participaciones Industriales (SEPI), has wholly acquired UK-based basmati rice maker Tilda.

Ebro bought the business from US-based and Nasdaq-listed food company The Hain Celestial Group for $342m, which equates to 13.7x Tilda's 2019 expected EBITDA.

Spanish state-owned fund SEPI currently owns 10.4% of the business via its company Alimentos y Aceites, while Grupo March's Corporacion Financiera Alba controls 14% and British fund manager Artemis Investment Management holds 3%.

Ebro is headquartered in Madrid, is listed on the Spanish stock exchange and has a presence in 25 countries worldwide, specialising in the production of pasta, rice and organic food. It controls various brands, including Italian pasta makers Garofalo and Bertagni, Spanish rice and quinoa producer SOS, French pasta maker Panzani and vegetable and ready meals producer Vegetalia.

Ebro generated EBITDA of €311m and net profit of €142m from revenues of €2.6bn in 2018 and reported net debt of €704.6m and total equity of €2.2m.

Company
Established in 1970 and based in Rainham, Tilda specialises in producing steamed and dry basmati rice, as well as wholegrain rice, quinoa and grain blends.

The company has two plants located in the UK and employs 326 staff. It generated revenues of £153m in 2018 and expects to reach EBITDA of around £20.5m from revenues of £164m in the fiscal year ending in June 2019.

People
Ebro Foods – Antonio Hernández Callejas (CEO).
The Hain Celestial Group – Mark Schiller (CEO).

Advisers
Vendor – Credit Suisse (corporate finance).