TIDMKYGA
RNS Number : 4313M
Kerry Group PLC
11 January 2023
Date: 11 January 2023
LEI: 635400TLVVBNXLFHWC59
KERRY GROUP
Kerry to sell its Sweet Ingredients Portfolio to Advent
International's portfolio company, IRCA
Kerry Group plc today announces that it has entered into
exclusive negotiations to sell the trade and assets of its Sweet
Ingredients Portfolio to IRCA ("the Potential Sale"), an
international leader in chocolate, creams, and other high-quality
semi-finished food ingredients, for a consideration of EUR500m(1) .
The Potential Sale is subject to relevant regulatory approvals and
routine closing adjustments. Employee consultation and information
processes have commenced in relevant jurisdictions.
The Sweet Ingredients Portfolio is a leading manufacturer of
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 US. Its
operational footprint covers four 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. The expected attributable financial results for
the year ended 31 December 2022 include revenues of EUR405m and
EBITDA of EUR41m.
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
realise 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."
The combination of IRCA and Kerry's Sweet Ingredients Portfolio
is expected to create a global leader in semi-finished food
ingredients with around EUR1 billion in revenues, a truly
international footprint and a significant presence in the US. It
would further strengthen IRCA's leadership positioning and expand
its broad assortment of high value-added ingredients.
This would represent IRCA's third acquisition since it was
acquired by Advent International ("Advent"), one of the largest and
most experienced global private equity investors, in July 2022.
This follows the recent acquisitions of Anastasi Group, a leading
Italian pistachio ingredients company, and of Cesarin SpA, a
leading artisanal fruit-based ingredients company.
The Potential Sale is expected to close in the first half of
2023 following the employee consultation and information processes
and receipt of regulatory approvals. On receipt, the proceeds from
the Potential Sale are expected to be used by Kerry for general
corporate purposes and the continued strategic development of the
Taste & Nutrition business.
(1)The consideration of EUR500m comprises an initial cash
consideration of EUR375m (subject to routine closing adjustments)
plus a EUR125m interest bearing vendor loan note.
ENDS
About Kerry
Kerry is a world leading provider of taste and nutrition
solutions for the food, beverage and pharmaceutical markets. We
innovate with our customers to create great tasting products, with
improved nutrition and functionality, while ensuring better impact
for the planet. Our leading consumer insights, RD&A team of
1,100+ food scientists and extensive global footprint enable us to
solve our customers' complex challenges with differentiated
solutions. At Kerry, we are driven to be our customers' most valued
partner, creating a world of sustainable nutrition. For more
information, visit www.kerry.com.
About IRCA
IRCA is an international leader in chocolate, creams, and
high-quality semi-finished food ingredients that for over 100 years
has been supplying the professional channels across the world. The
Group distributes its products across more than 100 countries and
runs 13 production facilities in Italy, United States, Belgium, and
Vietnam. Over 1,000 employees contribute every year to launching
innovative products tailored to the latest industry trends,
supplying a wide range of unique solutions to customers
globally.
About Advent International
Founded in 1984, Advent International is one of the largest and
most experienced global private equity investors. The firm has
invested in over 400 private equity investments across 41
countries, and as of September 30, 2022, had EUR90 billion in
assets under management. With 15 offices in 12 countries, Advent
has established a globally integrated team of over 285 private
equity investment professionals across North America, Europe, Latin
America and Asia. The firm focuses on investments in five core
sectors, including business and financial services; health care;
industrial; retail, consumer and leisure; and technology. For over
35 years, Advent has been dedicated to international investing and
remains committed to partnering with management teams to deliver
sustained revenue and earnings growth for its portfolio
companies.
For more information, visit:
Website: www.adventinternational.com
LinkedIn: www.linkedin.com/company/advent-international
KERRY CONTACT INFORMATION
=============================================
Investor Relations
Marguerite Larkin , Chief Financial
Officer
+353 66 7182292 | investorrelations@kerry.ie
William Lynch , Head of Investor
Relations
+353 66 7182292 | investorrelations@kerry.ie
Media
Catherine Keogh , Chief Corporate
Affairs & Brand Officer
+353 45 930188 | corpaffairs@kerry.com
Website
www.kerry.com
IRCA CONTACT INFORMATION
==================================================
Media
Roberto Patriarca
+39 335 65 09568 | roberto.patriarca@community.it
Website
www.irca.eu/en
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END
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