Ingredient maker Kerry Group has entered into a deal to purchase preservation technologies supplier Hare Topco Inc., trading as Niacet Corp., from an affiliate of funds advised by SK Capital Partners LP and other shareholders, the company announced in a recent release. The Ireland-based firm will spend €853 million, or about $1.01 billion, to acquire the business.

Niacet uses proprietary drying and granulation process technologies to manufacture products for the Bakery, Meat, and Pharma industries. Its products include cost-effective low-sodium preservation systems for meat and plant-based foods.

“The acquisition of Niacet’s complementary product portfolio enhances our leadership position in the fast-growing food production and preservation market and significantly advances our sustainable nutrition ambition,” said Kerry’s CEO Edmond Scanlon in a statement. “Niacet is a business with market leading positions, differentiated technologies and a strong and highly experienced management team. We are pleased to welcome the Niacet team to Kerry and we are excited at the potential the combination of our two businesses offers to outperform in this important and attractive market.”

Kerry said the transaction aligns with its food protection and preservation strategy and expands its portfolio to help customers utilize clean label, conventional, and combined solutions. The transaction also allows the ingredient firm bolster its position in the food safety and shelf life extension markets.  

“This transaction affirms the reputation we have developed as a trusted industry leader with a long-dated track record of making the highest quality products in the market. Our constant focus on innovation has been a key to the development and success of our new clean label products,” said Kelly Brannen, CEO and minority owner of Niacet, in the release. “I’d like to thank our employees for their dedication and commitment and SK Capital for its support throughout its ownership period. In partnership, we have strengthened and grown the company substantially, while establishing the next phase of Niacet’s growth. We view the sale to Kerry as a perfect fit.”

The companies expect the deal to close by the end of Q3 2021. Kerry said it plans to use existing liquidity, as well as proceeds from the divestiture of Kerry Consumer Foods’ Meats and Meals business, to fund the transaction.

Powder & Bulk Solids reported this month that Kerry agreed to shed its Kerry Consumer Foods  Meats and Meals business in the UK and Ireland to global food company Pilgrim’s Pride Corp.