Kerry Group has paid more than $100 million to acquire 100% of the share capital of Shanghai-based Greatang Orchard Food, which produces local, authentic taste solutions for local foodservice chains, as well as the meals and snacks markets in China. Potential additional payments of up to $100 million payable across the next three years may be made, if certain performance conditions are met each of these years.
The acquisition complements Kerry Group’s 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 Greatang Orchard Food company has approximately 120 employees and is expected to deliver full year 2023 revenues of nearly $42 million.
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The transaction follows Kerry Group’s 2021 acquisition of Jining Nature Group, a leading Chinese manufacturer of savory flavors, seasonings, and prepared food products, with well-established nationwide positions in the savory flavor and prepared foods sectors in China. The acquisition brought Kerry a wide range of authentic local and regional taste technologies and application capabilities.
In addition, the acquisition has helped expand Kerry’s China customer base by providing deeper access to the country’s large regional markets via existing and established distribution and foodservice channels. It also has enhanced Kerry’s savory flavor manufacturing capabilities in the Asia Pacific market and enabled the company to offer a full suite of savory offerings in the region, alongside its existing comprehensive sweet and beverage flavor portfolios.