Kerry Group to offload Sweet Ingredients business in £443m deal
The Sweet Ingredients Portfolio produces sweet and cereal products primarily for the end markets of bakery, cereal, confectionery, dairy and ice cream in Europe and the US. The potential sale would include four manufacturing facilities in the US, and six facilities across the UK, the Netherlands, Germany and France
Commenting on the sale, Kerry Group chief executive Edmond Scanlon said: “We are pleased to have entered exclusive negotiations with IRCA, who have a strong track record of developing their business within the category.
Kerry’s evolution
“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.”
The combination of IRCA and Kerry’s Sweet Ingredients Portfolio is expected to create a ‘global leader’ in semi-finished food ingredients with around €1bn (£886m) in revenues and represents IRCA’s third acquisition since it was acquired by Advent International in July 2022.
This follows the recent acquisitions of Anastasi Group, an Italian pistachio ingredients company, and artisanal fruit-based ingredients company Cesarin.
‘Differentiated set of technologies’
Massimo Garavaglia, chief executive of IRCA, added: “We are delighted to partner with Kerry on this transaction and look forward to its successful conclusion. The Sweet Ingredients Portfolio is a high-quality business with a differentiated set of technologies, and we are excited to welcome their talented team who, we believe, share our passion and drive to deliver the best for their customers and consumers.
“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 potential sale is expected to close in the first half of 2023, pending an employee consultation and information process and receipt of regulatory approvals. On receipt, the proceeds from the potential sale were expected to be used by Kerry for general corporate purposes and the continued strategic development of the Taste & Nutrition business.
