Kerry Group could spend almost €800 million on acquisitions this year
Kerry Group could spend almost €800 million on acquisitions this year, according to the group’s CEO Edmond Scanlon.
The CEO made the prediction as he presented Kerry Group’s interim management report for the first half of 2018 in Dublin yesterday (Thursday, August 9).Also Read: Steady revenue increase reported by Kerry Group
Addressing media at the press event, Scanlon stated that acquisitions are very much part of the group’s strategy.
Commenting on the potential for further acquisitions in the coming months, Scanlon said: “We are in a fragmented marketplace and in a fragmented peer environment – and we very much see ourselves as the consolidator in our space.
“I would say that the acquisition pipeline, as we see it today, is as strong as we have ever seen it. I feel very good about where we are.
“Our acquisition strategy will follow our business strategy, so it will see us continue to make acquisitions in terms of: the nutritional space; the authentic taste spaces; developing markets; as well as food service.
“There will be a bit of a geographic split as well,” he said.
The CEO indicated that the group typically spends its free cash flow on acquisitions – which is about €400 million.
This year it could be almost double that; but it’s very much down to timing.
“Certainly we feel very good about the pipeline; it’s just a matter of time. It’s hard to predict the timing of these acquisitions,” he concluded.