Kraft Foods Sell Minute Rice to Puleva
Ebro Puleva, S.A., a leading rice producer and distributor based in Spain, will buy Minute Rice for approximately $280 million. The Minute Rice brand had net revenues of approximately $90 million in 2005.
31/07/06 Kraft Foods Inc. has announced that it has agreed to sell its Minute Rice brand and assets to Ebro Puleva, S.A., a leading rice producer and distributor based in Spain, for approximately $280 million. The Minute Rice brand had net revenues of approximately $90 million in 2005.
"Our decision to sell Minute Rice is part of a broader effort at Kraft to focus our portfolio," said Dave Johnson, President, Kraft North America Commercial. "While Minute Rice is a great brand, our focus is on businesses in which we believe we have a sustainable competitive advantage."
The sale includes the Minute brand, as well as certain manufacturing equipment. The sale is expected to generate a one-time gain of $0.10 per share and ongoing dilution is expected to be $0.01 per share, neither of which was included in Kraft's July 24, 2006 earnings guidance. The gain will be recognized upon closing, which is subject to regulatory approval.
