Kerry Group has entered into exclusive negotiations to sell the trade and assets of its Sweet Ingredients portfolio to IRCA, an international leader in chocolate, creams, and other high-quality semi-finished food ingredients, for almost $550 million. The potential sale is expected to close in the first half of this year. Kerry is expected to use the proceeds from the sale for general corporate purposes and the continued strategic development of its Taste & Nutrition business.
The Sweet Ingredients portfolio manufactures sweet and cereal products with a broad range of technological capabilities, primarily serving the end markets of bakery, cereal, confectionery, dairy, and ice cream in Europe and the U.S. Its operational footprint covers four manufacturing facilities in the U.S. and six facilities across the UK, the Netherlands, Germany, and France. The portfolio incorporates a range of products spanning sweet particulates, chocolate confections, baked inclusions, variegates, and fruit purées.
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“We are pleased to have entered exclusive negotiations with IRCA, who have a strong track record of developing their business within the category," says Edmond Scanlon, CEO of Kerry Group. “This transaction would represent another strategic development in Kerry’s evolution, as we continue to look to enhance and refine our Taste & Nutrition portfolio, aligned to the areas where we can create the most value.”
The combination of IRCA and Kerry’s Sweet Ingredients portfolio is expected to create a global leader in semi-finished food ingredients with more than $1 billion in revenues. It also would further strengthen IRCA’s leadership positioning and expand its broad assortment of high value-added ingredients.