Kerry Group announces US$735m acquisitions

RNS Number : 4147C

Kerry Group PLC

15 October 2015

 



News release

15 October 2015

Kerry Group announces US$735m further development initiatives in global Taste & Nutrition

Kerry, the global taste & nutrition and consumer foods group, today announced the acquisitions of U.S. based Red Arrow Products, Island Oasis and Biothera Inc's Wellmune® business, significantly expanding the Group's industry-leading portfolio of innovative taste and nutrition solutions for global food, beverage and pharmaceutical applications.  Total consideration for the three businesses amounts to US$735m. In the financial year 2014, the businesses being acquired had annual revenues of US$301m and earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$59m. Kerry Group will finance the acquisitions from existing lines of credit.

Red Arrow Products is a leading supplier of natural smoke flavours and authentic natural savoury grill flavours serving meat, culinary and food industry markets worldwide. Headquartered in Manitowoc (WI), Red Arrow operates from manufacturing facilities in Manitowoc (WI) and Rhinelander (WI) supported by Application & Development Centres in Germany and Sweden. Combined with Kerry's recent acquisition of Wynnstarr Flavors and KFI Savoury (the U.S. based savoury business of Kraft Food Ingredients), the acquisition of Red Arrow will further strengthen Kerry's taste, technology and savoury flavour industry leadership. The acquisition, subject to regulatory approval, is expected to complete in early December.

Island Oasis is a category leading provider of all-natural premium cocktail mixes and customised beverage solutions serving 'on-premise', restaurant, leisure and hospitality segments of the U.S. market. Distributed and marketed though national and regional chains, QSR's and independents; the Island Oasis portfolio includes innovative frozen and shelf-stable fruit purées, coffee blends, performance nutrition beverage systems and customised 'on-premise' beverage equipment. Headquartered in Walpole (MA), the business operates from manufacturing facilities in Byesville (OH) and Buffalo (NY). The acquired business market-leading brands, including Island Oasis, Fuel and Barista Fria, complement Kerry's existing branded foodservice offerings (including DaVinci Gourmet, Big Train, Oregon Chai, Golden Dipt and Gold Ladle), broadening the Group's market reach and service in fast growing segments of the foodservice channel.

Biothera Inc.'s Wellmune® business produces and markets the unique Wellmune® branded natural food, beverage and supplement ingredient clinically proven to strengthen the immune system - improving health and wellness. Kosher, Halal, non-allergenic, GMO-free, gluten-free and 'Informed Sport' certified, Wellmune® is formulated in a growing number of food, beverage and supplement products in more than fifty countries throughout the world. The acquired business broadens Kerry's functional nutritional ingredients and wellness portfolio and complements the Group's market-leading taste solutions for food, beverage and supplement applications.

Commenting on the acquisitions, Stan McCarthy, Kerry Group Chief Executive said; "The acquisitions of Red Arrow, Island Oasis and Wellmune®, as well as significantly expanding our taste and nutritional solutions portfolio, bring a number of important innovative technology platforms to Kerry. Complementing our existing taste and nutrition leadership positioning and growth strategies, the businesses being acquired present tremendous growth opportunities throughout Kerry's global developed and developing markets".

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Notes to Editors:

About Kerry Group

Kerry Group today is a world leader in Taste & Nutrition serving the food, beverage and pharmaceutical industries and a leading consumer foods processing and marketing organisation in selected EU markets. With sales to over 140 countries worldwide, the Kerry organisation has grown to become a highly successful public company, having achieved sustained profitable growth with current annualised sales in excess of €5.8 billion. Launched as a public company in 1986, the market capitalisation of the Group has grown to a current level of approximately €12 billion. Kerry Group now employs over 24,000 people throughout its worldwide activities and operations.

For further information please contact:

Media Frank Hayes, Director of Corporate Affairs Tel:  [phone] Email: [e-mail] Kerry Web Site:  www.kerrygroup.com

Investor Relations Brian Mehigan, Chief Financial Officer Ronan Deasy, Group Financial Controller William Lynch, Head of Investor Relations Tel: [phone]        Email: [e-mail]

 

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