Hain Celestial completes divestment of rice brand Tilda for $342m

US-based food company Hain Celestial, has completed the sale of its premium basmati and speciality rice brand Tilda to Ebro Foods for $342m in an all-cash transaction.

Part of the proceeds from the deal will be used by Hain Celestial to reduce its debts and distribution alternatives for the remaining amount are being considered to maximise value to its shareholders.

Hain Celestial president and CEO Mark L Schiller said: “We are pleased to complete the strategic sale of Tilda, which is consistent with our transformational plan to simplify our portfolio, strengthen our core capabilities and expand margins and cash flow.

“Tilda has been a strong business for us, primarily in the United Kingdom, and under new strategic ownership, we expect the brand to continue to thrive.

“We believe this transaction represents a significant premium to a majority of other European food and global rice and pasta industry transactions over the last several years.

“In addition, this divestiture will enable us to reduce our exposure to marketplace disruption associated with the uncertainty of Brexit and additional future potential foreign currency fluctuations.”

The acquisition is reported to be in line with the Ebro Foods strategy to boost its premium brands portfolio in the rice segment. Furthermore, the deal will enable it to have a strong foothold in the UK market.

With a workforce of more than 326 employees, Tilda operates two manufacturing facilities located in Rainham, UK.

For this deal, Credit Suisse served as financial adviser to Hain Celestial.

In May, Hain Celestial signed a definitive agreement to sell all of the equity interest in its Hain Pure Protein business to Aterian Investment Partners III in a deal valued at $80m, subject to adjustments.

The Hain Pure Protein business included the FreeBird and Empire Kosher businesses.