HARRISBURG, Pa. (PRNewswire) — New World Pasta Company announced today that it has entered into an agreement to acquire the No Yolks® and Wacky Mac® dry pasta brands and certain assets from Strom Products Ltd. for $50 million. The transaction is expected to close by December 31, 2011.
"The No Yolks® brand commands the number one market share position within the dry pasta noodle and dumpling segment in both the United States and Canada, and provides New World Pasta an excellent opportunity to solidify its leadership position within the North American dry pasta business" said Peter Smith, President and Chief Executive Officer of Ebro North America, the U.S. division of Ebro Foods, S.A. "In addition, this business presents manufacturing, logistical, and selling synergies which will result in the addition of two very profitable brands to New World Pasta's portfolio."
"The acquisition of the No Yolks® and Wacky Mac® brands is consistent with our strategic plan to expand our leadership position within the branded North American pasta business" said Antonio Hernandez Callejas, Chairman and Chief Executive Officer of Ebro Foods, the parent company of New World Pasta. "They also enable the company to continue to capitalize upon the North American consumers' keen interest in wellness-related products that enable them to live a healthier lifestyle."
No Yolks® dry pasta is a noodle-style product that was first introduced in 1976 that is cholesterol free, contains no saturated fat, and is high in fiber with market shares of 15.6 in the United States and 29.4 in Canada. The Wacky Mac® brand was also introduced in 1976 as a fun, healthy, vegetable-based pasta, comprised of unique shapes and four colors. Net revenue for the two brands will total approximately $37.5 million in 2011.
New World Pasta is the largest branded pasta manufacturer in North America with leading brands such as Ronzoni®, Creamette®, Skinner®, San Giorgio®, Prince®, Catelli®, American Beauty®, and Light & Fluffy®. Together with Riviana Foods Inc., the largest processor, marketer and distributor of branded and private label rice products in the United States, the companies make up Ebro Foods' division, Ebro North America.