NETHERLANDS – Kerry, an Irish-based global taste and nutrition company, has signed an agreement to acquire preservation technology company Niacet in a deal estimated to be worth US$1.014 billion (€853 million).
Niacet specializes in food preservation and has exclusive drying and granulation process technologies in its key market categories of Bakery, Meat and Pharma.
It also has cost-effective low-sodium preservation systems for both meat and plant-based food across conventional and clean label solutions.
According to a statement from Kerry, the acquisition will bolster its efforts to strengthen its own technologies for food protection and preservation.
“The acquisition of Niacet’s complementary product portfolio enhances our leadership position in the fast-growing food protection and preservation market and significantly advances our sustainable nutrition ambition,” says Edmond Scanlon, CEO of Kerry.
Kerry’s acquisition comes at a time when food protection and preservation are becoming important aspects of food manufacturing.
A recent Kerry research revealed that 60 percent of consumers are more concerned about food safety since the outset of COVID-19.
Additiionally, thirty percent of all food is wasted, and 700 million people get sick from food each year, scenarios which would be preveneted if food is properly protected and preserved.
The deal will broaden Kerry’s portfolio of preservation technologies enabling greater reach and solutions delivery across key food waste categories.
Niacet’s complementary capabilities will for instance enhance Kerry’s food protection and preservation strategy to offer new products and technologies in a broader market.
The resulting revenue synergies are also expected to enable the Niacet business to significantly outperform the market and deliver at least mid-to-high single-digit volume growth.
The transaction will be growth and margin enhancing to Kerry and is expected to be accretive to adjusted earnings per share in year one.
Kerry expectss the deal to close by the end of the third quarter of 2021, subject to customary closing conditions and regulatory approvals.
The acquisition will be funded via a combination of existing liquidity and a dedicated bridge facility which will be repaid out of proceeds from the sale of Kerry Consumer Foods’ Meats and Meals business for approximately €819 million (US$976 million), that was announced earlier.
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