Ebro Foods, through its United States subsidiary Riviana Foods Inc., has acquired the US consumer rice business division of RiceTec AG and RiceTec, Inc. which manufactures and markets products under the brand RiceSelect®.
The transaction, valued at USD 45 million, includes the brand and certain other assets of the business, including a production plant in Alvin, Texas and a workforce of 42 employees.
With sales of USD 31.1 million in 2014, RiceSelect is a leading brand in the US retail market for aromatic and organic rice varieties and products based on ancient grains, quinoa and other super cereals. The brand has a premium image and a portfolio of high value added products widely recognized by North American consumers.
An acquisition with a triple differential value
The RiceSelect business is a perfect complement to Riviana’s portfolio. It will boost the company’s development in the fastest growing segments of the North American rice market and establish a high level of synergies with both businesses being based within a very small radius in Texas.
With the integration of the RiceSelect business, the Ebro Group makes headway toward a triple objective:
1. Furthering its investment in high value added products and concepts with clear differentiation on the market;
2. Achieving significant positioning in the healthy foods segment through new concepts based on ancient grains, gluten free, quinoa, whole grain, organic, high fiber, vitamins, minerals, etc.; and
3. Consolidating its world leadership in rice.
Source: Ebro Foods