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Kerry to sell sweet ingredients portfolio

Kerry Group announced it is negotiating to sale the trade and assets of its Sweet Ingredients Portfolio to IRCA, for EUR 500 m. The potential sale is subject to relevant regulatory approvals. In the meantime, employee consultation and information are underway. The sale is expected to close in the first half of 2023.

The combination of IRCA and Kerry’s Sweet Ingredients Portfolio is expected to create a company specializing in semi-finished food ingredients with around EUR 1 billion in revenues. This would represent IRCA’s third acquisition since it was acquired by Advent International in July 2022. This follows the recent acquisitions of Anastasi Group, a leading Italian pistachio ingredients company, and of Cesarin SpA, an artisanal fruit-based ingredients company.

The Sweet Ingredients Portfolio comprises a broad range of technological capabilities, primarily serving the end markets of bakery, cereal, confectionery, dairy and ice cream in Europe and the US. The business unit has manufacturing facilities in the US (in Illinois, Kansas, Missouri, and California), 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.

Edmond Scanlon, CEO of Kerry Group, commented: “We are pleased to have entered exclusive negotiations with IRCA, who have 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 & Nutrition portfolio, aligned to the areas where we can create the most value.”

Massimo Garavaglia, CEO of IRCA, added: “We are delighted to partner with Kerry on this transaction and look forward to its successful conclusion. The Sweet Ingredients Portfolio is a high-quality business with a differentiated set of technologies, and we are excited to welcome their talented team who, we believe, share our passion and drive to deliver the best for their 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 realize its full potential as part of the IRCA family.”

Francesco Casiraghi, Managing Director at Advent International, commented: “We are delighted to welcome this best-in-class sweet ingredients business to the IRCA family, which would represent a major step in our goal of creating a genuine global leader in semi-finished food ingredients. There are so many exciting long-term opportunities for this combination, and we look forward to supporting the management team in this next phase of growth for the business.”

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