Ebro Puleva: sells Azucarera Ebro to ABF

Madrid / ES. (ep) Ebro Puleva, sole shareholder of Azucarera Ebro, and Associated British Foods (ABF), sole shareholder of British Sugar, have signed the sale and purchase contract of the shares of Azucarera Ebro, subject to approval by the anti-trust authorities and it is likely to occur in early 2009.

As Ebro Puleva informed in November when the transaction was formally announced, the transaction is valued at 526 million EUR with the following breakdown:

• ABF purchases the sugar business for 385 million EUR, debt free.
• Ebro Puleva will receive 141 million EUR from third parties, corresponding to other compensations, mainly the restructuring funds established under the CMO sugar reform.

Moreover Ebro Puleva will incorporate into its real estate assets, more than 200 hectares of land classified for various uses, valued at 42 million EUR. Ebro Puleva and ABF are also exploring opportunities for future collaboration in other areas of mutual interest, such as the supply of rice, special flours, ingredients and also research and development (R+D+i) through Puleva Biotech.

The sale of its sugar business marks the beginning of a new development phase in Ebro Puleva, in which the group sets its sights on becoming an international benchmark in the meal solutions segment, offering a broad array of products based on health, pleasure and convenience and developing a forward-looking R+D+i policy. Banco Santander has acted as financial advisor and Garrigues as legal advisor to the seller.

Antonio Hernández Callejas, Chairman of Ebro Puleva, has announced that «We are very pleased with the agreement reached with ABF, which will enable us to meet two goals: on the one hand, it represents a breakthrough for the construction of an entirely consumer-geared multinational focusing on high value-added products, and on the other hand, it guarantees the best possible development of our sugar business through its incorporation in a leading European food company, the second largest sugar producer in the world».

George Weston, Chief Executive of Associated British Foods, has declared that «The acquisition of Azucarera Ebro is an exciting development for British Sugar. The business enjoys a leading position in Iberia supported by modern beet factories and a new cane refinery that will benefit from our partnership with Illovo Sugar. Azucarera Ebro and its growers have enjoyed considerable support from the EU and central and regional governments in recent times and we look forward to working with them in continuing to develop the business and the beet industry».

About Ebro Puleva – ABF – British Sugar

Ebro Puleva is the leading Group in the Spanish food sector in terms of turnover, profit, market capitalisation and international presence. Ebro Puleva is world leader in the rice sector, the second group in the international pasta sector, the leading sugar group in Spain and number 1 on the Spanish dairy product market. It has leading brands in each of these sectors.

Associated British Foods is a diversified international food, ingredients and retail group with sales of 8,2 billion GBP and 96’000 employees in 44 countries. Its aim is to achieve strong, sustainable leadership positions in markets that offer potential for profitable growth. The group looks to achieve this through a combination of growth of existing businesses, acquisition of complementary new businesses and achievement of high levels of operating efficiency. The group has established a track record of successful value-adding transactions.

British Sugar is the second largest sugar producer in the world producing four million tonnes of sugar annually and has sugar operations in the United Kingdom, Poland, China and in a number of countries in southern Africa. British Sugar´s revenue for the year ending September 2008 was some 1,3 billion GBP.