NETHERLANDS – Global supplier of taste and nutrition solutions Kerry Group has entered into exclusive negotiations to sell the trade and assets of its Sweet Ingredients Portfolio to IRCA for a consideration of €500m (US$537.9 million).
IRCA is a portfolio company of Advent International with expertise in chocolate, creams, and other high-quality semi-finished food ingredients.
Kerry’s Sweet Ingredients Portfolio commands an international leadership position in sweet and cereal products with a broad range of technological capabilities.
The portfolio primarily serves the end markets of bakery, cereal, confectionery, dairy and ice cream in Europe and the US.
Its operational footprint covers four manufacturing facilities in the US (in Illinois, Kansas, Missouri, and California), and six facilities across the UK, the Netherlands, Germany and France.
The portfolio incorporates a range of products spanning sweet particulates, chocolate confections, baked inclusions, variegates and fruit purées.
Kerry revealed that the potential sale is subject to relevant regulatory approvals and routine closing adjustments adding that employee consultation and information processes have commenced in relevant jurisdictions.
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.
It further revealed that the portfolio’s expected attributable financial results for the year ended 31 December 2022 include revenues of €405m (US$435.72 million) and EBITDA of €41m (US$44 million).
Edmond Scanlon, CEO of Kerry Group, commented: “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 €1 billion in revenues.
It would further strengthen IRCA’s leadership positioning and expand its broad assortment of high value-added ingredients.
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.”
This would represent IRCA’s third acquisition since it was acquired by Advent International (“Advent”) in July 2022 and follows the recent acquisitions of Anastasi Group, a leading Italian pistachio ingredients company, and of Cesarin SpA, a leading artisanal fruit-based ingredients company.
The Potential Sale is expected to close in the first half of 2023 following the employee consultation and information processes and receipt of regulatory approvals, Kerry said.
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