Ebro Concludes Sale of its Dairy Business to Lactalis

This transaction gives Ebro considerable financial strength to undertake further strategic development, through which it aims to bolster its position as world leader in the rice sector through organic and inorganic growth.

Sep 3 2010 --- Once approved by the European antitrust authorities, Ebro and Lactalis signed the contract of sale of Ebro's dairy business. This division is now wholly owned by Lactalis.

As mentioned when we announced the agreement in principle between buyer and seller, the reference value of the transaction is 630 million euros.

Of this sum, Ebro received 555.2 million euros and will receive the rest, after the necessary adjustments, when the audit of the dairy division financial statements at 31 August 2010 is concluded, foreseeably in mid-October.

This transaction gives Ebro considerable financial strength to undertake further strategic development, through which it aims to bolster its position as world leader in the rice sector through organic and inorganic growth, move further towards its goal of establishing itself as leading pasta manufacturer worldwide and become an international benchmark in the meal solutions sector. At the same time, Ebro emerges as one of the healthiest enterprises on the Spanish financial scene.

Meanwhile, its inclusion in the largest dairy group in Europe gives Puleva enormous development potential and an outstanding opportunity to consolidate and strengthen its position of leadership in the Spanish dairy sector.