Kerry Group acquires US-based tech company
Kerry Group, the global taste and nutrition and consumer foods group, has confirmed the acquisition of US-based tech company Ganeden.
Based in Cleveland, Ganeden is a tech innovation company which focuses on patented probiotics and related technologies.
The company currently has annual revenue of approximately $25m, and has more than 135 patents for technologies in the supplement, food, beverage, nutrition and personal care markets.
The company is best known GanedenBC its patented probiotic ingredient found in more than 750 food and beverage products around the world.
A statement from Kerry Group said that the acquisition complimented its 2015 acquisition of Wellmune,
"Ganeden technologies will be extended into wider applications across Kerry's global developed and developing markets," a statement from the company said.
Under the terms of the acquisition Kerry Group are unable to disclose the value to the deal, however, director of corporate affairs at the company, Frank Hayes, described the acquisition as one of importance,
"The business [Ganeden] is small in scale, but its technology can be deployed across all of the markets that Kerry operates in," Mr Hayes said.
In other news, newly-appointed Kerry Group CEO Edmond Scanlon yesterday told investors at a Capital Markets presentation at the group’s Naas facility that group expects to deliver in excess of 10pc adjusted earnings per share growth on a constant currency basis on average each year over the next five years.
The growth will be delivered through the achievement of above industry-average volume growth, and continued business margin expansion.
In terms of trading profit margin progression, Mr Scanlon said that the margin in taste and nutrition is targeted to grow by 40 basis points per annum.
The margin in consumer foods is targeted to grow by 20 basis points per annum, which will contribute a 30 basis points group margin improvement per year on average across the next five years.
"Kerry Group has a unique scalable business model which I am confident can deliver the continued organic growth of the business across developed and developing markets as planned.
We are in a strong position to lead the continued consolidation of our industry benefiting from the group's strong balance sheet, scalable business model and geographic footprint," Mr Scalon said.
Earlier this year Kerry Group announced revenue growth of 4.8pc to €3.2bn in the six months to 30 June. Trading profit at the group during the six month period increased by 5.2pc year-on-year to €338.4m.