The talks are aimed at Kerry selling his sweet ingredients business

TRALEE, IRELAND – Kerry Group PLC is in talks with IRCA to sell Kerry’s sweet ingredients portfolio for €500 million ($537 million). The portfolio serves the bakery, cereal, confectionery, dairy and ice cream markets in Europe and the United States. IRCA is internationally active in chocolate creams and other food semi-products.

The sweet ingredients portfolio was expected to contribute revenues of €405 million and EBITDA of €41 million ($44 million) to Tralee-based Kerry Group in the fiscal year ending December 31, 2022. The portfolio has four manufacturing facilities in the United States and six facilities across the UK, the Netherlands, Germany and France. Products include sweet particles, chocolate confections, baked toppings, variegate and fruit purees.

The companies expect the potential sale to be concluded in the first half of the year after consulting with employees and the information process and receiving regulatory approval.

“This transaction would represent another strategic development in Kerry’s evolution as we continue to strive to advance and improve our flavor and nutrition portfolio, aligned with the areas where we can create the most value,” said Edmond Scanlon, chief executive of Kerry Group.

IRCA, headquartered in Gallarate, Italy, distributes its products in more than 100 countries and operates 13 manufacturing facilities in Italy, the United States, Belgium and Vietnam. The combination of IRCA and Kerry’s sweet ingredients portfolio is expected to create a global leader in ready-to-eat food ingredients with around €1 billion ($1.07 billion) in revenue, an international footprint and a significant presence in the United States.

“We are delighted to partner with Kerry on this transaction and look forward to its successful completion,” said Massimo Garavaglia, CEO of IRCA. “The Sweet Ingredients portfolio is a high quality business with a differentiated set of technologies and we are excited to welcome their talented team who we believe share our passion and desire to deliver the best for their customers and consumers. This acquisition would represent a strong fit in our portfolio, with its highly complementary products and technology capabilities, and would help us become a truly global player.”

This potential acquisition would represent IRCA’s third acquisition since it was acquired by Advent International, a global private equity investor, in July 2022. Other acquisitions included Anastasi Group, an Italian pistachio ingredients company, and Cesarin SpA, an artisan ingredients company on fruit base.

Leave a Reply

Your email address will not be published. Required fields are marked *