SEPI-backed Ebro buys SOS rice division

The private equity-backed firm has also promised to contribute €50m to SOS's capital increase, putting an end to rival negotiations with potential buyers such as PAI Partners and SODENA.

Ebro will acquire a significant stake in the business, while its participation in the capital increase will allow it a further 10% of shares.

The company was impressed by SOS's status as a world leader in the rice segment and by its activity in markets with enormous growth prospects. It expects the acquisition to complement its own rice business in Spain and the US, open doors within the Dutch market and reinforce its position in other European and Middle Eastern countries.

Following the merger, which is subject to regulatory rulings and the approval of SOS's shareholders, Ebro Foods' rice division is expected to turn over more than €1bn and make profits of €150m. The two companies combined will command a 32-34% market share.

Ebro President Antonio Hernández and Director Demetrio Carceller will join the SOS board.

Madrid-based rice producer SOS was founded in 1990 and generated sales of €250m and an EBITDA of €30m in 2009. In May 1992 it was acquired for £20.06m by Baird Capital Partners, who have since exited the firm.

 

 

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