Kerry has entered into negotiations to sell the trade and assets of its sweet ingredients portfolio to US private equity firm Advent International for a consideration of €500 million.
The portfolio manufactures sweet and cereal products with a range of technological capabilities, primarily serving confectionery, bakery, cereal, dairy and ice cream end markets in Europe and the US.
The portfolio’s operational footprint covers four manufacturing facilities in the US and six facilities across the UK, the Netherlands, Germany and France.
A spokesperson for Kerry said that the proposed sale is part of the company’s efforts to enhance and refine its portfolio, aligned to the areas where it can create the most value.
Edmond Scanlon, CEO of Kerry Group, said: “This transaction would represent another strategic development in Kerry’s evolution, as we continue to look to enhance and refine our Taste & Nutrition portfolio, aligned to the areas where we can create the most value”.
Advent is set to buy the manufacturing unit through its IRCA portfolio company. In a statement, the company said: “The combination of IRCA and Kerry’s sweet ingredients portfolio is expected to create a global leader in semi-finished food ingredients with around €1 billion in revenues, a truly international footprint and a significant presence in the US”.
Massimo Garavaglia, CEO of IRCA, added: “We are delighted to partner with Kerry on this transaction and look forward to its successful conclusion…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. We look forward to helping the sweet ingredients portfolio realise its full potential as part of the IRCA family.”
The potential sale is expected to close in the first half of 2023 and is subject to relevant regulatory approvals and routine closing adjustments.
By Phoebe Fraser
Source: foodbev.com
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