Hain Celestial completes strategic sale of Tilda to Ebro Foods

28 Aug 2019 --- Organic and natural products company, The Hain Celestial Group, Inc., has completed the strategic sale of Tilda, a premium basmati and specialty rice brand, to Ebro Foods SA for a purchase price of US$342 million in cash. Hain Celestial’s offloading of the rice brand to the Spanish food processor is part of the company’s transformation plan to simplify its portfolio, strengthen its core capabilities and expand margins and cash flow – and the company underscores that this divestiture reduces Hain Celestial’s exposure to the potential marketplace disruptions caused by Brexit.

"We are pleased to complete the strategic sale of Tilda,” says Mark L. Schiller, Hain Celestial's President and CEO. "Tilda has been a strong business for us, primarily in the UK, 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,” he says. 

The purchase price reflects an adjusted EBITDA multiple of 13.5 times, based on estimated fiscal year 2019, which the company will report on August 29. Hain Celestial says that it 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.

Tilda is expected to contribute approximately US$200 million in net sales and US$25 million of adjusted EBITDA for the fiscal year ending June 30, 2019. 

In May, Hain Celestial entered into a definitive agreement to sell all of its equity interest in Hain Pure Protein Corporation to Aterian Investment Partners III LP for a purchase price of US$80 million, subject to adjustments. The Hain Pure Protein Corporation portfolio includes the FreeBird (organic chicken) and Empire Kosher businesses. 

Edited by Gaynor Selby