Kerry Group sells international confectionery arm for EUR 500 million
Kerry Group is in exclusive negotiations to sell the business and assets of its Sweet Ingredients portfolio to IRCA, an international leader in chocolate, creams and other high-quality semi-finished food ingredients, for consideration of €500 million, funded in part from a vendor loan .
The sale is subject to appropriate regulatory approvals and routine closing adjustments. Consultation and information processes for employees have begun in relevant jurisdictions, Kerry said.
The Sweet Ingredients portfolio manufactures sweet and cereal products with a wide range of technological capabilities, primarily serving the bakery, cereal, confectionery, dairy and ice cream end markets in Europe and the US.
The sale price includes an initial cash purchase price of EUR 375 million plus an interest bearing seller loan of EUR 125 million.
The entity for sale has four manufacturing facilities in the US and six facilities in the UK, Netherlands, Germany and France.
The expected financial results attributable to the portfolio for the year ended December 31, 2022 include revenues of €405 million and income of €41 million.
Kerry Group CEO Edmond Scanlon said the transaction would represent another strategic development for Kerry as the company seeks to enhance and refine its Taste & Nutrition portfolio
The combination of IRCA, backed by Advent Capital, with Kerry’s Sweet Ingredients portfolio is expected to create a global business with revenues of approximately EUR 1 billion.
The potential sale is expected to close in the first half of 2023. Kerry plans to use the proceeds from the transaction for general corporate purposes and further strategic development of the Taste & Nutrition business.
That’s because the Irish-headquartered company has made a number of specialized acquisitions, including BioSearch, a biotechnology company in Spain, Natreon in the US, and Niacet, which specializes in food protection and preservation products.
https://www.independent.ie/business/irish/kerry-group-to-sell-international-sweets-arm-for-500m-42278984.html Kerry Group sells international confectionery arm for EUR 500 million