The Hain Celestial Group, Inc. (HAIN), a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East providing consumers with A Healthier Way of Life™, today announced that it has completed the strategic sale of Tilda, a premium basmati and specialty rice brand, to EBRO FOODS S.A. for a purchase price of $342 million in cash. The purchase price reflects an adjusted EBITDA multiple of 13.5x, based on estimated fiscal year 2019, which the company will report on Aug. 29, 2019. Hain Celestial 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.
"We are pleased to complete the strategic sale of Tilda, which is consistent with our transformational plan to simplify our portfolio, strengthen our core capabilities and expand margins and cash flow," commented Mark L. Schiller, Hain Celestial's president and chief executive officer. "Tilda has been a strong business for us, primarily in the United Kingdom, 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."
Tilda is expected to contribute approximately $200 million in net sales and $25 million of adjusted EBITDA for the fiscal year ending June 30, 2019.
Credit Suisse acted as a financial advisor to Hain Celestial.
Source: Hain Celestial Group