Madrid / ES. (epg) Through its US subsidiary Riviana Foods Spain’s Ebro Foods S.A. has reached a binding agreement to purchase the assets comprising the business of InHarvest Incorporated. InHarvest is a US company with a strong presence in the industrial (B2B), Food Service and Private Label businesses for premium specialities in rice, quinoa and grains in the United States.
This acquisition includes the two plants operated by InHarvest in Colusa and Woodland (California), strategically situated in the rice-growing areas of western United States, where the Ebro Group does not yet have any factories. The business employs approximately 140 workers and posted a turnover of USD 50.3 million in 2020.
The agreed transaction price is USD 48,75 million.
This acquisition is of considerable strategic interest for the Ebro Group because: (i) it would be easy to integrate within the Riviana business; (ii) the supply chain, plant network and packaging and production capacity of the Ebro Group in the United States would be improved; (iii) it would provide access to business platforms on which Riviana does not currently have a significant presence (such as Food Service or the military channel); and (iv) the value-added goods produced by InHarvest would be included within Riviana’s product portfolio.
The transaction is expected to be completed in early April 2022, once certain formalities agreed by the parties are met. Approval by the regulatory authorities is not required for this transaction.