A-Brands

Kerry Announces Plan To Sell Its Sweet Ingredients Portfolio

By Dayeeta Das
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Ireland's Kerry Group is considering the sale of the trade and assets of its Sweet Ingredients Portfolio for €500 million to IRCA, a maker of chocolate, creams and other semi-finished food ingredients.

The consideration of €500 million comprises an initial cash consideration of €375 million, subject to routine closing adjustments, plus a €125 million interest-bearing vendor loan note, the company noted.

Edmond Scanlon, CEO of Kerry Group, commented, "We are pleased to have entered exclusive negotiations with IRCA, who have a strong track record of developing their business within the category.

"This transaction would represent another strategic development in Kerry's evolution, as we continue to look to enhance and refine our Taste & Nutrition portfolio, aligned to the areas where we can create the most value."

Sweet Ingredients Portfolio

Kerry's Sweet Ingredients Portfolio manufactures sweet and cereal products by implementing a range of technological measures and primarily serves the end markets of bakery, cereal, confectionery, dairy and ice cream in Europe and the US.

Its operations include four manufacturing facilities in the US, in Illinois, Kansas, Missouri, and California, and six facilities across the UK, the Netherlands, Germany and France.

The product portfolio includes sweet particulates, chocolate confections, baked inclusions, variegates and fruit purées.

Massimo Garavaglia, CEO of IRCA, added, "This acquisition would represent a strong fit with our portfolio, with its highly complementary product and technological capabilities, and help us to become a truly global player. We look forward to helping the Sweet Ingredients Portfolio realise its full potential as part of the IRCA family."

The Deal

The acquisition of Kerry's Sweet Ingredients Portfolio will help ICRA create a leading company in semi-finished food ingredients with around €1 billion in revenues, an international footprint, and a significant presence in the US.

It would further strengthen IRCA's leadership positioning and expand its assortment of value-added ingredients, Kerry added.

The deal is also IRCA's third acquisition since it was acquired by Advent International in July 2022 and follows the acquisitions of  Italian pistachio ingredients company, Anastasi Group, and artisanal fruit-based ingredients company, Cesarin SpA.

The potential sale, expected to close in the first half of 2023, is subject to regulatory approvals and routine closing adjustments.

Employee consultation and information processes have commenced in relevant jurisdictions, the company noted.

Kerry will use the proceeds from the potential sale for general corporate purposes and the continued strategic development of its Taste & Nutrition business.

© 2023 European Supermarket Magazine – your source for the latest A-Brands news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.

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