Kerry Group has agreed to pay €853 million for the acquisition of Niacet, a manufacturer of food preservation ingredients.
The announcement follows Kerry’s agreement to sell the majority of its consumer foods business for €819 million.
The private equity firm SK Capital Partners currently owns the US company, which is a global leader in food preservation technology.
The announcement follows Kerry’s agreement to sell the majority of its consumer foods business for €819 million.
Kerry announced late last week that it is selling its meats and meals business in Ireland and the United Kingdom – including well-known brands such as Galtee, Denny, Richmond, and Fridge Raiders – to US food multinational Pilgrim’s Pride in order to focus its business on its core taste and nutrition line.
The acquisition of Niacet is subject to regulatory approval and is expected to close by the end of the third quarter.
Kerry will pay with existing funds and a bridge facility funded by the sale of its meats and meals business. According to Kerry, the deals will have a minor impact on the company’s net debt-to-earnings ratio this year.
Niacet expects revenues of around $220 million (€185 million) and earnings of around $66 million this year. Customers can be found in over 75 countries.
“The acquisition of Niacet’s complementary product portfolio enhances our leadership position in the fast growing food protection and preservation market and significantly advances our sustainable nutrition ambition,” said Kerry CEO Edmond Scanlon.
