Ireland’s Kerry Group revealed yesterday that it has entered into exclusive negotiations to sell the trade and assets of its Sweet Ingredients Portfolio to Advent International-owned IRCA for €500m.
IRCA is a food company that specialises in chocolate, creams, and other high-quality semi-finished ingredients.
Kerry’s Sweet Ingredients Portfolio includes products primarily serving 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 and six facilities across the UK, the Netherlands, Germany and France. The unit generated revenues of €405m last year, with EBITDA of €41m.
Edmond Scanlon, CEO of Kerry Group, commented: “We are pleased to have entered exclusive negotiations with IRCA, who have a strong track record of developing their business within the category. 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.”
Massimo Garavaglia, CEO of IRCA, added: “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 planned combination of IRCA and Kerry’s Sweet Ingredients Portfolio is expected to create a global leader in semi-finished food ingredients with around €1bn in revenues.
The deal would represent IRCA’s third acquisition since it was acquired by the Advent private equity firm in July 2022. This includes the acquisition of Anastasi Group, an Italian pistachio ingredients company, and Cesarin, an artisanal fruit-based ingredients company.
The sale of the Kerry unit is expected to close in the first half of 2023 following the employee consultation and receipt of regulatory approvals. The Irish group noted that the proceeds from the deal would be used for general corporate purposes and the continued strategic development of its main Taste & Nutrition business.
