USA – The food and ingredients giant, Kerry Group has announced that it will acquire Ariake USA,the North American business of Ariake Japan which specializes in manufacturing of natural food seasonings for US$368.43 million (€325 million).
The flavour and ingredients company has also reached an agreement to acquire the North American coatings and seasonings business (SEM) of Southeastern Mills, a fourth generation food company headquartered in the United States.
Kerry said both the deals which are subject to regulatory approval and customary closing conditions, will be financed from existing lines of credit.
“These acquisitions further enhance the group’s foundational technology portfolio, as well as strengthening its food-service positioning in line with strategic growth priorities,” said Kerry Group.
Enhancing clean label portfolio
The deal strengthens Kerry’s portfolio of clean ingredients, a range of natural ingredients and minimally processed foods which replaces flavours, colouring, preservatives and sweeteners with healthier alternatives where possible.
Kerry indicated that the Southeastern Mills business, which manufactures coatings and seasonings, would enhance its offering in meat seasoning.
Southeastern Mills manufactures coatings, food bases and gravy, baking and seasoning mixes and serves processors, restaurants and food-service distributors.
Ariake USA produces clean-label, savoury taste solutions derived from poultry, pork and vegetables at its facility in Harrisonburg, Virginia and has extraction technologies and development capabilities to produce a suite of tailored solutions for manufacturers.
“Ariake USA’s highly specialised extraction technologies and development capabilities produce a suite of tailored solutions across a number of end use markets,” said Kerry Group.
“This acquisition further enhances Kerry’s extensive authentic taste and clean label portfolio, whilst also complementing the group’s from-food-for-food heritage.”
This year, the company has made a number of acquisitions and mergers estimated at US$907 million (€800 million).
Kerry agreed to acquire Fleischmann’s Vinegar Company and AATCO Food Industries in a deal worth approximately US$413 million (€365 million) in October.
It recently secured a licence agreement to supply Renaissance’s Acryleast.