Sector News

Kerry to sell its sweet ingredients portfolio for €500m

January 14, 2023
Food & Drink

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

comments closed

Related News

February 4, 2023

Unilever names FrieslandCampina’s Hein Schumacher as next CEO

Food & Drink

Schumacher will replace Alan Jope, who announced his decision to retire last September, less than a year after a failed attempt by Unilever to buy GlaxoSmithKline’s consumer healthcare business and just months after activist investor Nelson Peltz joined the company’s board.

February 4, 2023

Tetra Pak execs flag plant-based ice cream development hurdles as indulgent offerings expand

Food & Drink

Globally, plant-based ice creams have doubled their share of the market over the last five years, according to Tetra Pack. Pea protein and coconut milk are leading the way, but Tetra Pak cites data showing that oat-based ice cream launches have doubled in the previous year.

February 4, 2023

Examining the meaning of eco-labels: Is it time for mandated methodology?

Food & Drink

A myriad of so-called eco-labels are being rolled out across various F&B products, but with no gold standard or strict rules governing precisely what the logos mean and what methodology is behind them, concerns are growing that they will confuse consumers and ultimately be counterproductive.

How can we help you?

We're easy to reach