MADRID, SPAIN — Private equity firm CVC Capital Partners VIII has entered into exclusive discussions to acquire the Panzani dry pasta, couscous, sauces and semolina business of Madrid-based Ebro Foods in a transaction valued at €550 million ($649.6 million).

Under terms of the transaction, CVC would acquire the Panzani, Ferrero, Regia, Zakia and Le Renard brands, as well as all the operating assets (including plants and mills) related to these brands. In total, the brands generated revenues of approximately €470 million in 2020, and the businesses associated with the brands employs 750.

The acquired business would remain headquartered in Lyon, France.

Ebro Foods said the fresh pasta and rice businesses, including brands Lustucru Selection and Taureau Ailé, would be carved-out prior to any transaction with CVC Capital and therefore remain within the Ebro Group.

“This divestment is in line with Ebro’s strategic goals for the period 2019-21 and would enable Ebro to further concentrate its resources with a view to strengthening and expanding its premium, fresh pasta and convenience businesses, in which it is a global leader,” Ebro Foods said.

Ebro over the past year has divested a number of its dry pasta brands, including most of its brands in the United States. In November 2020, Ebro, through its Riviana Foods subsidiary, sold most of its dry pasta business to TreeHouse Foods in a transaction valued at $242.5 million. The acquisition included a manufacturing plant in St. Louis and the Skinner, No Yolks, American Beauty, Creamette, San Giorgio, Prince and Light ‘n Fluffy, Mrs. Weiss’, Wacky Mac, P&R Procino-Rossi and New Mill brands. Then, in March 2021, Riviana sold its Ronzoni dry pasta brand and a dry pasta manufacturing facility located in Winchester, Va., to 8th Avenue Food & Provisions, Inc., which is partially owned by Post Holdings, Inc., in a transaction valued at $95 million.

Founded in 1981, CVC has secured commitments in excess of $162 billion from some of the world’s leading institutional investors across its private equity and credit strategies. Funds managed or advised by CVC are invested in more than 90 companies worldwide, which have combined annual sales of approximately $100 billion and employ more than 450,000 people. The company’s current portfolio includes GarudaFood, Munchy Food Industries and Vivartia.