LONDON, UK: Kerry Group has entered into unique negotiations to sell the commerce and assets of its Sweet Ingredients Portfolio to IRCA, an worldwide chief in chocolate, creams, and different high-quality semi-finished meals ingredients, for a consideration of €500 million.
The sale is topic to related regulatory approvals and routine closing adjustments. Employee session and information processes have commenced in related jurisdictions.
The Sweet Ingredients Portfolio is a number one producer of candy and cereal merchandise with a broad vary of technological capabilities, primarily serving the finish markets of bakery, cereal, confectionery, dairy and ice cream in Europe and the US. Its operational footprint covers 4 manufacturing facilities inside the US (in Illinois, Kansas, Missouri, and California), and 6 facilities throughout the UK, the Netherlands, Germany and France.
The portfolio incorporates a vary of merchandise spanning candy particulates, chocolate confections, baked inclusions, variegates and fruit purées. The anticipated attributable monetary outcomes for the year ended 31 December 2022 include revenues of €405m and EBITDA of €41m.
Edmond Scanlon, CEO of Kerry Group, commented: “We are happy to have entered unique negotiations with IRCA, who’ve a strong track record of developing their enterprise inside the category. This transaction would represent one other strategic development in Kerry’s evolution, as we proceed to look to improve and refine our Taste & Nutrition portfolio, aligned to the areas the place we can create the most value.”
Massimo Garavaglia, CEO of IRCA, added: “We are delighted to partner with Kerry on this transaction and look ahead to its profitable conclusion.
The Sweet Ingredients Portfolio is a high-quality enterprise with a differentiated set of technologies, and we’re excited to welcome their talented team who, we believe, share our ardour and drive to ship the best for his or her customers and consumers.
This acquisition would represent a strong match with our portfolio, with its extremely complementary product and technological capabilities, and assist us to become a truly global player. We look ahead to serving to the Sweet Ingredients Portfolio realise its full potential as a half of the IRCA family.”
Francesco Casiraghi, Managing Director at Advent International, commented: “We are delighted to welcome this best-in-class candy ingredients enterprise to the IRCA family, which might represent a main step in our goal of making a real global chief in semi-finished meals ingredients. There are so many thrilling long-term alternatives for this combination, and we glance ahead to supporting the administration team on this subsequent phase of growth for the business.”
The mixture of IRCA and Kerry’s Sweet Ingredients Portfolio is anticipated to create a global chief in semi-finished meals ingredients with round €1 billion in revenues, a truly worldwide footprint and a significant presence inside the US. It would additional strengthen IRCA’s management positioning and expand its broad assortment of excessive value-added ingredients.
This would represent IRCA’s third acquisition because it was acquired by Advent International (“Advent”), one of many largest and most skilled global private fairness investors, in July 2022. This follows the recent acquisitions of Anastasi Group, a number one Italian pistachio ingredients company, and of Cesarin SpA, a number one artisanal fruit-based ingredients company.
The sale is anticipated to shut inside the primary half of 2023 following the worker session and information processes and receipt of regulatory approvals. On receipt, the proceeds from the Potential Sale are anticipated for use by Kerry for general company functions and the continued strategic development of the Taste & Nutrition business.
Kerry is a world main supplier of style and nutrition options for the food, beverage and pharmaceutical markets.