New World Pasta Company to be Acquired by Ebro Puleva, S.A.
New World Pasta will continue to operate under its current name, and its business activities will be maintained in Harrisburg, PA, led by Scott Greenwood, the Chief Executive Officer of New World Pasta, and his senior management team.
07/06/06 New World Pasta Company, North America's leading marketer and supplier of branded dry pasta and noodles, and Ebro Puleva, S.A., a leading multinational food group in the rice, sugar, dairy and pasta businesses, announced today that Ebro will acquire 100% ownership of New World Pasta. The transaction has been unanimously approved by the Boards of Directors controlling both companies, and by the holders of more than a majority of the outstanding stock of the parent company of New World Pasta. The companies anticipate that the transaction will close within the next ten days subject to the satisfaction of customary conditions. No regulatory approvals are needed.
New World Pasta will continue to operate under its current name, and its business activities will be maintained in Harrisburg, PA, led by Scott Greenwood, the Chief Executive Officer of New World Pasta, and his senior management team.
"Ebro is an internationally recognized leader in consumer packaged foods, with a track record of success in growing its businesses organically and by acquisition," said Scott Greenwood. "We are pleased that Ebro has seen the value and opportunity of our people, our valuable brands, our customers and our business. We intend to continue our successful efforts to grow and improve our business. With the strategic depth, research and development experience and additional financial resources that Ebro provides, we will be well positioned to harness the full potential of our Company."
Antonio Hernandez, Chairman and Chief Executive Officer of Ebro Puleva, S.A., said, "New World Pasta is a market leader in the North America pasta and noodle business. Its Healthy Harvest(R) whole wheat blend pasta is setting a new standard for consumer acceptance and growth in the traditional pasta category. We believe that our worldwide expertise and geographic balance, including our presence in the pasta category in Europe, where we have sales of approximately $600 million, and the rice category in North America, can help drive continued product innovation and development in the U.S. and Canada, and create significant value for our shareholders, and for New World Pasta's business partners and employees. We see great opportunity for the future."
Rothschild Inc. acted as a financial advisor to New World Pasta on the transaction, and Skadden, Arps, Slate, Meagher & Flom LLP provided legal advice to New World Pasta.
