Kerry Group has agreed sell its Sweet Ingredients portfolio to IRCA, an international company specialising in chocolate, creams, and other high-quality semi-finished food ingredients.
Subject to negotiations and regulatory approvals, the consideration will be €500m. This is made up of an initial cash consideration of €375m plus a €125m interest bearing vendor loan note.
Kerry’s Sweet Ingredients division makes sweet and cereal products for bakery, cereal, confectionery, dairy and ice cream customers in Europe and the US.
It has four manufacturing facilities in the US (Illinois, Kansas, Missouri, and California), and six facilities across the UK, the Netherlands, Germany and France.
The portfolio incorporates a range of products spanning sweet particulates, chocolate confections, baked inclusions, variegates and fruit purées. Division turnover in 2022 was €405m and EBITDA was €41m. according to Kerry.
In Association with
Kerry Group CEO Edmond Scanlon commented: "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."
Massimo Garavaglia, CEO of IRCA, added: "The Sweet Ingredients portfolio is a high-quality business with a differentiated set of technologies.
“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.”
IRCA is controlled by private equity investor Advent International.
Advent MD Francesco Casiraghi stated: “There are so many exciting long-term opportunities for this combination, and we look forward to supporting the management team in this next phase of growth for the business."
The deal is IRCA's third acquisition since it was acquired by Advent in July 2022. The other purchases were Anastasi Group, a leading Italian pistachio ingredients company, and Cesarin, a leading artisanal fruit-based ingredients company.
The parties expect the sale to close before the summer.
Kerry Group said the sale proceeds used will be used for strategic development of the Taste & Nutrition business.
Photo: Edmond Scanlon, Kerry Group CEO
