Spanish food processor Ebro Foods has entered into an agreement to sell its pasta business in Germany to Newlat Group.
Ebro operates its pasta business under Birkel and 3Glocken brands in Germany.
The deal, which is expected to close by the end of 2013, includes the transfer of all brands, industrial facilities, land related to the German business.
This transaction is part of Ebro's current strategic plan that aims to concentrate efforts and resources in the business areas that increase the profitability ratios hitherto achieved by the company.
The Birkel business could expand further through its incorporation in Newlat Group, which has a strong presence in the German pasta market through the brand Buitoni.
Ebro Foods said that the deal would make revenues of about €21.5m plus 50% of EBITDA generated by the business sold during the next five years.
