-KH News Desk (firstname.lastname@example.org)
IRCA, a world leader in chocolate, creams, and other premium semi-finished food ingredients, and Kerry Group plc have entered into exclusive discussions to purchase the business and assets of IRCA (“the Potential Sale”) for a sum of €500 million. The Potential Sale is subject to customary closing adjustments and pertinent regulatory clearances. Processes for employee consultation and information have started in the pertinent jurisdictions.
With a wide range of technological skills, The Sweet Ingredients Portfolio is a top producer of sweet and cereal goods. It primarily serves the bakery, cereal, confectionery, dairy, and ice cream end markets in Europe and the US. Its operational footprint includes six facilities spread across the UK, the Netherlands, Germany, and France in addition to four manufacturing plants in the US (in Illinois, Kansas, Missouri, and California). The product portfolio includes a variety of items, including fruit purées, baked inclusions, variegates, and sweet particulates made of chocolate. For the fiscal year ending on December 31, 2022, revenues of €405 million and EBITDA of €41 million are anticipated.
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.”
IRCA and Kerry’s Sweet Ingredients Portfolio joining forces is anticipated to establish a market leader in semi-finished food ingredients with annual sales of over €1 billion, a genuinely global reach, and a strong US presence. It would improve IRCA’s leadership position even more and increase the variety of high-value components it offers.
Since being bought by Advent International (“Advent”), one of the biggest and most seasoned global private equity investors, in July 2022, this would be IRCA’s third acquisition. This comes after the recent purchases of Cesarin SpA, a prominent artisanal fruit-based ingredients firm, and Anastasi Group, a major Italian pistachio ingredients company.
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