Kerry Announces Plan To Sell Sweet-Ingredients Portfolio
Kerry Group has announced that it has entered into exclusive negotiations to sell the trade and assets of its sweet-ingredients portfolio to IRCA, an international leader in chocolate, creams, and other high-quality semi-finished food ingredients, for a consideration of €500 million.
According to the company, the potential sale is subject to relevant regulatory approvals and routine closing adjustments.
Employee consultation and information processes have commenced in relevant jurisdictions, it added.
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 and nutrition portfolio, aligned to the areas where we can create the most value.”
The sweet-ingredients portfolio is a leading manufacturer of sweet and cereal products with a broad 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 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.
The company noted that the expected attributable financial results for the year ended 31 December 2022 include revenues of €405 million and EBITDA of €41 million.
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.”
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.
On receipt, the proceeds from the potential sale are expected to be used by Kerry for general corporate purposes and the continued strategic development of its taste and nutrition business.