Hain Celestial Group Inc. said Aug. 28 that it completed the sale of its basmati and specialty rice brand Tilda to Spain's Ebro Foods SA for $342 million in cash.
Madrid-based Ebro Foods produces and sells rice, pasta and healthy food and organic products across Europe, North America, Asia and Africa.
The U.S. organic and natural products company intends to use a portion of the proceeds to pay down debt. It said it is assessing distribution alternatives for the remainder of the proceeds to boost shareholder value.
Mark Schiller, president and CEO of Hain Celestial, said Tilda has been a strong business for the company, mainly in the U.K.
"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," Schiller said.
Hain Celestial expects Tilda to account for $200 million in net sales and $25 million of adjusted EBITDA for the group's fiscal year ended June 30.
Credit Suisse acted as a financial adviser to Hain Celestial in the sale.
