MADRID, SPAIN — Ebro Foods S.A. has acquired premium specialty rice brand Tilda from The Hain Celestial Group, Inc. for $342 million in cash. The transaction includes two plants in Rainham, U.K., and a workforce of 326 employees.
Founded in the earlier 1970s, Tilda offers a range of grains and rice, primarily basmati rice. The brand’s portfolio includes steamed, dry and specialty rices as well as Super Grains, featuring grains such as quinoa, millet and rice combined with coconut, cranberries and pumpkin seed; Blends, which combine basmati rice with wild rice or quinoa; Pulses and Rice, which pair pulses such as chickpeas and edamame with basmati rice in such flavors as harissa and lemon or spring onion and wasabi; and Tilda Kids, which blend steamed rice with vegetables.
Tilda’s net sales in the fiscal year ended June 30 totaled £152.6 million ($200 million), 60% of which was in the U.K.
“Through this acquisition, Ebro 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,” Ebro Foods said. “In addition, Ebro believes that Tilda’s international nature will pave the way for extensive development with other group products.”
Hain Celestial plans to use a portion of the Tilda sale proceeds to pay down debt and is evaluating distribution alternatives.
“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,” said Mark L. Schiller, president and chief executive officer 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.”
