Kerry Group in $230m deal to buy Cargill
A $230m (€171m) acquisition by food group Kerry of US-based Cargill Flavor Systems is to go ahead, the company has confirmed.
In July, Kerry had told investors that it was in exclusive discussions to acquire Cargill Flavor Systems. The deal is now likely to close by the end of the year.
The transaction will add annual revenues of about $200m to Kerry's turnover. The Cargill business employs about 700 people in the US, Asia and Europe.
Last week Kerry also announced that it was buying German-based flavourings group SuCrest for an undisclosed amount. It is a leading provider of sweet ingredients to European makers of ice cream, confectionery and snacks, and reported revenue of about €50m last year.
Kerry chief executive Stan McCarthy recently said that the group expected to spend about €400m on acquisitions before the end of the year.
He also said Kerry could spend anywhere between €1bn and €2bn on one single purchase without having to raise any additional equity from shareholders.
He added that raising equity was too expensive compared to securing debt in the current environment. Kerry would be maintaining an "aggressive acquisition strategy", he said.
The group said the acquisition of Cargill would extend Kerry's presence in emerging markets.