Kerry Group announced recently that it has entered into negotiations to sell the trade and assets of its sweet ingredients portfolio to IRCA, a food company which offers chocolate, creams and mixes for the bakery sector, for a total of EU€500 million. The sale is subject to relevant regulatory approvals and routine closing adjustments.
The sweet ingredients portfolio is a manufacturer of sweet and cereal products with a range of technological capabilities, primarily serving the end markets of bakery, cereal, confectionery, dairy and ice cream in Europe and the US. Its operational footprint spans four manufacturing facilities in the US (Illinois, Kansas, Missouri and California) and six facilities across the UK, the Netherlands, Germany and France.
The portfolio also incorporates a range of products including sweet particulates, chocolate confections, baked inclusions, variegates and fruit purées. Expected financial results for the year ending 31 December 2022 include revenues of €405 million.
“We are pleased to have entered exclusive negotiations with IRCA, who have a strong track record of developing their business within the category,” said Edmond Scanlon, CEO of Kerry Group. “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.”
“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,” added Massimo Garavaglia, CEO of IRCA. “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.”
Combining IRCA and Kerry’s sweet ingredients portfolio is expected to create a “global leader” in semi finished food ingredients with around €1 billion in revenue. This would reflect IRCA’s third acquisition since it was acquired by Advent International. This follows on from recent acquisitions of Anastasi Group, an Italian pistachio ingredients company and Cesarin SpA, an artisanal fruit-based ingredients company.
The sale is expected to close in the first half of 2023.
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