Spanish food group Erbo Foods has struck a deal to shed five of its pasta brands and their associated manufacturing plants and mills to international private equity and credit firm CVC Capital Partners VIII (CVC). The transaction includes the Panzani dry pasta, couscous, sauces, and semolina business, as well as the Ferrero, Regia, Zakia, and Le Renard brands.

The business and brands are valued at more than €550 million (around $649 million). If the transaction proceeds, CVC will take on 100% of share capital in Panzani S.A.S. Erbo said Panzani will remain based out of their current headquarters in Lyon, France. In 2020, the brands generated combined sales of €470 million, or about $554.6 million.

Erbo said the divestiture aligns with its strategic goals and will allow it to focus its efforts on its premium, fresh pasta and convenience businesses. The company plans to retain the Lustucru Selection and Taureau Aile brands.

CVC and Erbo expect the sale to reach completion before Dec. 31, 2021. The parties must clear the transaction with anti-trust regulators, gain the approval of Erbo Foods’ shareholders, and consult on the matter with representatives of French workers.