Kerry Group has today (Wednesday, May 31) announced that it has acquired Colombian food ingredients company, Proexcar S.A.S.
Established in 2009, Proexcar is a processor of meat extracts and supplies the food industry with solutions to improve the yields of final products.
The company employs around 120 employees and has leading natural functional systems technologies which can deliver “clean label solutions into protein applications”.
In a statement Kerry Group said that it acquired 100% of the share capital of Proexcar for an initial payment of $44 million, subject to routine closing adjustments.
The global taste and nutrition company added that there is the potential for an additional payment of up to $18 million in 2025, based on achieving “earn-out conditions”.
“This acquisition strengthens Kerry’s offering and leadership position within the overall LATAM [Latin America] meat market, while also providing a platform for strategic development within the ANDEAN region,” the statement read.
Last month, Kerry Group reported a 10.3% increase in revenues in the first three months of 2023 driven by increased pricing of 8.3%.
The overall growth was led by the dairy, snacks and pharma markets, as customers continued to navigate the heightened inflationary environment.
The company said the Taste and Nutrition element of the business delivered “solid overall volume growth” despite the effect of increased pricing.
There was a volume reduction for the company’s Dairy Ireland division of 5.8% and increased pricing of 14.4%, reflecting the challenging global dairy market conditions.
The company said that consumer demand remained resilient through the period given the heightened inflationary environment.
While market conditions are currently uncertain, Kerry said that it remains strongly positioned for growth with a good innovation pipeline.