FDBusiness.com

The Hain Celestial Group, a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East, has completed the strategic sale of Tilda, a premium basmati and specialty rice brand, to Ebro Foods, the largest food group in Spain, for $342 million in cash. The purchase price reflects an adjusted EBITDA multiple of 13.5x, based on estimated fiscal year 2019. Hain Celestial expects to use a portion of the proceeds to pay down debt and is evaluating distribution alternatives for the remainder to maximize value to shareholders.

“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,” comments Mark L. Schiller, president and chief executive of Hain Celestial. “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.”

Tilda operates two plants at Rainham in the UK and employs 326 people. Its net sales in the past year, up to June 2019, totalled £152.6 million, 60% of which were in the UK.

Through this acquisition, Ebro Foods not only enhances its portfolio of global premium brands in the rice sector, but also acquires a strong foothold in the British market, where it has to date had only a token presence. In addition, Tilda’s international nature will pave the way for extensive development with other Ebro products.