Pending regulatory approval, the purchase is expected to close by the end of the year.
Olivieri Foods, which had total sales in 2012 of $105.5 million, employs 375 people in Hamilton, Ont., and Delta, B.C.
"This sale represents an excellent opportunity to optimize the value of our fresh pasta business, while realizing its potential under a company dedicated to expanding in the global pasta industry," said Richard Lan, President and CEO.
Ebro is a multinational food group in the rice, pasta and sauces sectors.
Earlier this week, Canada Bread's majority owner, Maple Leaf Foods (TSX:MFI) said it was exploring options with its bakery business, including putting it up for sale.
Maple Leaf has been scouring its operations for cost savings as part of a seven-year restructuring plan that would improve the profits of the overall business, which is primarily focused on meat products.
If a deal materializes, popular brands like Dempster's and Tenderflake would find themselves in the hands of a new owner.