Kerry Group plc has announced it has reached agreement to acquire Niacet Corp. from an affiliate of funds advised by SK Capital Partners, LP and other shareholders for €853 million on a cash-free, debt-free basis.
In a statement, the global taste & nutrition company, the deal is subject to customary closing adjustments.
Niacet is a global market leader in technologies for preservation.
Kerry said it has 'clear leadership positions in Bakery and Pharma, and cost-effective low-sodium preservation systems for meat and plant based food across both conventional and clean label solutions.'
Growth And Margin Enhancing
Following the acquisition, Niacet will be integrated into Kerry’s global food protection and preservation platform.
The transaction will be growth and margin enhancing to Kerry and is expected to be accretive to adjusted earnings per share in year one, the company said.
Edmond Scanlon, CEO of Kerry, commented, “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. Niacet is a business with market leading positions, differentiated technologies and a strong and highly experienced management team.
Scanlon noted the addition of Niacet’s complementary capabilities will enhance Kerry’s food protection and preservation strategy to offer new products and technologies in a broader market.
"The resulting revenue synergies are expected to enable the Niacet business to significantly outperform the market and deliver at least mid-to-high single digit volume growth," he said.
Niacet's 'Rich Heritage'
Niacet has customers in over 75 countries and key manufacturing sites in Niagara Falls (USA) and Tiel (The Netherlands).
For the year ended 31 December 2021 Niacet said it is expecting to have a pro forma annualised revenue of in the region of $220 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of almost $66 million.
Kelly Brannen, CEO and significant minority owner of Niacet, commented, “We are proud of the rich heritage we have built in Niacet, dating back to when my family purchased Niacet in 1978. This transaction affirms the reputation we have developed as a trusted industry leader with a long-dated track record of making the highest quality products in the market."
"Our constant focus on innovation has been key to the development and success of our new clean label products. We view the sale to Kerry as a perfect fit. It will allow Niacet to grow at a much faster rate and sell in new markets around the world," he added.
Pilgrim’s Pride Corporation Deal
On the 18 June, Kerry Group plc announced it has reached agreement to sell its Consumer Foods’ Meats and Meals business in the UK and Ireland to Pilgrim’s Pride Corporation for a cash consideration of €819 million (£704 million).
The deal is subject to routine closing adjustments, the group said in a statement.
The Meats and Meals business is a best-in-class provider of convenience food solutions, with leading brands and longstanding relationships with major retailers, it added.