Kerry seals South African deal
KERRY Group has completed the takeover of a South African ingredients business, further increasing its footprint on that continent.
The company has closed on a deal for Orley Foods, a Cape Town-based supplier of ingredients for ice creams, drinks, cereals and dairy goods.
Terms of the deal were not revealed.
When announcing its annual results last week, Kerry Chief Executive Stan McCarthy revealed that the company was close to completing the deal.
This is the second acquisition by Kerry in South Africa in the last 12 months.
Last year Kerry took over FlavourCraft, a Natal-based flavourings company.
While Africa is an emerging market for Kerry, most of the growth comes from the company's ingredients and flavours (I&F) division.
Last year I&F dominated Kerry's accounts, accounting for more than €4bn of the group's €5.9bn in revenue.
Margins were up in the sector, while profits surged 9.3pc to more than €500m.
In contrast, Kerry's consumer foods business has stagnated during the downturn.
It is now less than a third of the company's business.
Profits from consumer foods were flat last year, while margins fell – a key measure of a company's health.
Kerry shares closed flat at €43.