Just days after selling the meat and ready meal brands in its Consumer division to Pilgrim’s Pride for €819m, Kerry Group announced today that it is buying preservatives maker Niacet Corp for €853m.
US-based Niacet specialises in preservation technologies for use in bakery, meat and pharmaceuticals. It also creates low-sodium preservatives for meat and plant-based food.
The business has customers in over 75 countries with its main manufacturing sites in Niagara Falls (USA) and Tiel (The Netherlands). It is expected to generate revenues of around $220m this year and EBITDA of $66m.
The deal comes at a time of growing demand for longer-lasting food as consumers become more aware of the environmental impact of waste, while producers are seeking new ways to manage the shelf life of plant-based meat alternatives.
Kerry stated that the addition of Niacet’s capabilities will enhance its food protection and preservation strategy to offer new products and technologies in a broader market.
Following the sale of the bulk of its consumer brands last week, the group reconfirmed that its focus was on growing its core Taste & Nutrition division to enhance its position as a leading business to business ingredient solutions provider for the food, beverage and pharmaceutical markets.
“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,” said Edmond Scanlon, Kerry’s Chief Executive.
“Niacet is a business with market-leading positions, differentiated technologies and a strong and highly experienced management team. We are pleased to welcome the Niacet team to Kerry and we are excited at the potential the combination of our two businesses offers to outperform in this important and attractive market.”
Kerry is buying Niacet from an affiliate of funds advised by SK Capital Partners, with the deal expected to close in the third quarter of this year.
