Kerry Group has today (Wednesday, January 11) confirmed that it will sell the trade and assets of its Sweet Ingredients Portfolio to IRCA for a consideration price of €500 million.
IRCA is an Italian headquartered food company which specialises in the ingredients and preparations sector.
Kerry Group said employee consultations and information processes relating to the sale are now underway in relevant regions.
It expects the sale process to close within the first half of 2023 following the completion of approval and consultation processes.
It has outlined that the proceeds from the sale of its Sweet Ingredients Portfolio are expected to be used for general corporate purposes, as well as the strategic development of the taste and nutrition portfolio.
The portfolio includes a range of sweet and cereal products, with the business largely servicing the bakery, confectionary, cereal, dairy and ice-cream markets in Europe and the US.
Kerry Group confirmed in a statement that the portfolio’s expected attributable financial results for 2022 include revenues of €405 million and earnings before interest, taxes, depreciation and amortisation of €41 million.
Edmond Scanlon, CEO, Kerry Group said:
“We are pleased to have entered exclusive negotiations with IRCA, which has a strong track record of developing their business within the category.
“This transaction would represent another strategic development in Kerry’s evolution, as we continue to look to enhance and refine our taste and nutrition portfolio, aligned to the areas where we can create the most value,” he said.
Massimo Garavaglia, CEO of IRCA, also said the group was also looking forward to a “successful conclusion”.
“The Sweet Ingredients Portfolio is a high-quality business with a differentiated set of technologies, and we are excited to welcome its talented team which, we believe, shares our passion and drive to deliver the best for its customers and consumers.
“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.
“We look forward to helping the Sweet Ingredients Portfolio realise its full potential as part of the IRCA family,” he concluded.
The combination of IRCA’s existing portfolios with Kerry’s new business could potentially create a market leader in semi-finished food ingredients valued in the region of €1 billion.
Providing the sale proceeds, this would represent IRCA’s third purchase since its acquisition by private equity investor Advent International in July 2022.
The company also acquired pistachio ingredients company, Anastasi Group and Cesarin SpA, an artisinal fruit-based ingredients firm.