CVC Capital Partners VIII and the Ebro Group have entered into exclusive discussions for the acquisition by CVC Capital Partners VIII of Panzani® dry pasta, couscous, sauces and semolina business.

More specifically, the transaction would include: 1) the Panzani®, Ferrero®, Regia®, Zakia® and Le Renard® brands, and 2) all the operating assets (including plants and mills) related to these brands. The business perimeter contemplated in the transaction posted a turnover of €470 million in 2020 and employs 750 employees. It will remain headquartered in Lyon, France. The divestment would not have any social impact on the employees of the business.

The transaction remains subject to the French workers' representatives information and consultation, customary regulatory approvals and the approval of General Shareholders Meeting of Ebro Foods, S.A. It is expected that the envisaged transaction would be completed before 31 December 2021.

The transaction has been valued at €550 million (the value of 100% of the business) and would comprise the sale of 100% of the share capital of Panzani S.A.S. Prior to the envisaged transaction, the fresh pasta and rice businesses, including leading brands Lustucru Selection® and Taureau Ailé®, would be carved-out and therefore remain within the Ebro Group.

This divestment is in line with Ebro's strategic goals for the period 2019-2021 and would enable Ebro to further concentrate its resources with a view to strengthening and expanding its premium, fresh pasta and convenience businesses, in which it is a global leader.