Kerry Group is reportedly to acquire Fleischmann's Vinegar Company and AATCO Food Industries in a deal worth in the region of €365 million.
'The acquisitions further expand its technology portfolio, as well as strengthening its foodservice and developing markets positioning,' the dairy group said in a statement published today.
The two companies have annualised revenues of approximately €150 million, reports the Irish Independent.
It is believed that the global taste, nutrition and consumer foods group will finance the acquisitions from 'existing lines of credit', and it is expected that the transactions will be completed prior to year-end, subject to regulatory approvals.
Solid H1 Results
Earlier this year Kerry Group posted a revenue increase on a reported basis by 1.4% to €3.2 billion in the first six months of 2018.
The dairy group said that this growth reflects ‘strong volume growth and contribution from acquisitions, offset by adverse currency movements’.
The group’s trading profit increased by 0.5% to €340 million year-on-year, but said that the increase reflected an 8.7% growth after adverse translation currency impact of 8.2%.
Business volumes grew by 3.6% and pricing increased by 0.6%. Contribution from acquisitions accounted for 3.9% growth, and adverse translation currency impact of 6.6% and an adverse transaction currency impact of 0.1% both offset revenues.
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.