Kerry Group plc has confirmed it has paid an initial €91 million for a Shanghai-headquartered food business.
The Tralee based global taste and nutrition company has acquired 100% of the share capital of Shanghai Greatang Orchard Food company.
The acquisition deal includes potential additional payments of up to RMB780 million (€99 million) payable across the next three years depending on conditions being met.
The Shanghai Greatang Orchard Food company has around 120 employees and is expected to deliver full year 2023 revenues of approximately €38 million.
In a regulatory announcement today (Tuesday, August 1) Kerry Group stated: “Greatang is a leading producer of local authentic and innovative taste solutions for local foodservice chains and the meals and snacks markets”.
It added: “This acquisition strongly complements Kerry’s leading authentic taste position in China, broadening and deepening its capability and portfolio of local taste solutions in the region, most notably in the significant foodservice hotpot market.
“Greatang’s expertise strengthens and expands Kerry’s strategic positioning and capability as an innovation partner for local and international customers in China”.
The Tralee headquartered group has already an established presence in the region and this latest deal will build on its previous acquisitions in China.
In 2021 it acquired the Jining Nature Group, a Chinese manufacturer of savoury flavours, seasonings and prepared food products and in 2017 acquired the Chinese food ingredients company, Tianning Flavours.
Earlier this year Kerry Group’s dairy division, Kerry Dairy Ireland, launched a new adult nutrition product in China aimed at older consumers.
Manufactured in Charleville, Co. Cork, the formula contains “a blend of milk powder and science-backed ingredients” to support immune, muscle, bone, and cognitive health.
Kerry Dairy Ireland, which has over 20 years’ experience in the Chinese market, previously said that Irish dairy products are viewed as “premium amongst more affluent consumers”.
It believes that there is a growing opportunity in China for fortified dairy products as the middle class expands.