SEPI-backed Ebro to buy SunRice for $578m

With Ebro's support, SunRice will extend its research and development operations.

Three representatives from Ebro will join a new Grower Advisory Board, which will be established to buy the crops from New South Wales rice growers.

Based in Leeton, Australia, SunRice manufactures rice products including microwave rice, rice cakes, flavoured rice and corn cakes. It was founded in 1950 and employs 1,300 people worldwide. The business, whose Chairman is Gerry Lawson, generated revenues of $817m and a net profit of $11.7m in 2009, but is reported to be highly indebted.

Rothschild Australia and Chang Pistili & Simmons are advising the transaction, which needs to meet several key conditions and will require the approval of SunRice shareholders. It is scheduled to close in April 2011.

SEPI acquired a minority stake in Ebro in February 2006, which it is reported to be looking to sell in 2011.

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