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Kerry to Sell Sweet Ingredients Portfolio to IRCA

Image courtesy of Kerry Group Logo_KERRY.jpg
Kerry is selling its Sweet Ingredients Portfolio to Advent International’s portfolio company, IRCA.
The combination of IRCA and Kerry’s Sweet Ingredients Portfolio is expected to create a global leader in semi-finished food ingredients

Kerry Group plc has entered into exclusive negotiations to sell the trade and assets of its Sweet Ingredients Portfolio to IRCA, an international leader in chocolate, creams, and other high-quality semi-finished food ingredients, for a consideration of €500m1

The Sweet Ingredients Portfolio is a leading manufacturer of sweet and cereal products with a 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 IL, KS, MO, and CA), 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. 

“We are pleased to have entered exclusive negotiations with IRCA, who have a strong track record of developing their business within the category," said Edmond Scanlon, CEO of Kerry Group. "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.”

“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," said Francesco Casiraghi, managing director at Advent International. "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 €1 billion in revenues, an international footprint, and a significant presence in the US.

This would represent IRCA’s third acquisition since it was acquired by Advent International, 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.

¹The consideration of €500m comprises an initial cash consideration of €375m (subject to routine closing adjustments) plus a €125m interest bearing vendor loan note.

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