Rhodia announced the signing of a final agreement for the sale of its food ingredients business to Danisco. The transaction should be finalized in May, once legal authorizations have been received. Rhodia announced February 13 that it had signed an agreement to negotiate exclusively with the Danish company for the sale of the business.
The sale price is approximately 320 million euros for a business with a 31,6 million euros 2003 pro forma EBITDA (Earnings Before Interest Taxes Depreciation and Amortization), representing an EBITDA multiple of more than 10 times.
This divestment would provide Rhodia with a capital gain before taxes of more than 200 million euros.
The food ingredients business, which includes the cultures, hydrocolloids and food safety products activities, generated sales of 211 million euros in 2003 and includes 860 employees worldwide.