News
Kerry to sell sweet ingredients portfolio for €500m to IRCA
18 Jan 2023Irish ingredient supplier Kerry will sell its sweet ingredients business to Italian food ingredients maker IRCA for €500 million as it looks to focus on areas where it can create the most value, its CEO said.
IRCA, a B2B portfolio company of US equity firm Advent International, manufactures chocolate, creams, pastries, and gelato. For over 100 years, IRCA has been supplying businesses across the world, distributing its products globally using 13 production facilities based in Europe, the US, and Asia.
“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,” said Francesco Casiraghi, managing director at Advent International.
A sweet deal
Kerry’s sweets and cereals arm is a leading supplier producing finished products such as sweet particulates, chocolate confections, baked inclusions, variegates and fruit purées in Europe and the US. It has ten manufacturing sites, six in Europe and four in the US, with a broad range of technological capabilities. The division is expected to create €1 billion in revenue with its latest acquisition of IRCA, creating a global leader in semi-finished food ingredients.
“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.
“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.”
Strategic development
Kerry is a leading food ingredients company that has been expanding and diversifying. In 2021, it acquired clean-label preservatives manufacturer Niacet and aims to double its reach by 2030.
It has also invested significantly in biotech in 2022, acquiring German precision fermentation company c-LEcta and Mexican enzymes manufacturer Enmex. These acquisitions would accelerate innovation capabilities in enzyme engineering, fermentation, and bio-process development, the company said at the time. The Irish ingredients company will use proceeds of the sale with IRCA to continue strategic development of its Taste & Nutrition business.
© iStock/Wavebreakmedia
"We are delighted to partner with Kerry on this transaction and look forward to its successful conclusion," said Massimo Garavaglia, CEO of IRCA.
“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.”
The sale is expected to close in the first half of 2023, following employee consultation, and information processes, subject to regulatory approval and routine closing adjustments.
Related news
Snack trends, ingredient claims, and plant-based perceptions: Highlights from Fi Europe 2023, part 1
7 Dec 2023
Value-led snacking, sustainability storytelling, and the importance of having a ‘star ingredient’: we asked consumer analysts and market experts at Fi Europe about the trends and innovations that are shaping the food industry.
Read more
Confirmed: California bans four ‘toxic’ food additives
10 Oct 2023
Four food additives, including the colouring Red No. 3, will be banned in food in the US state of California over safety concerns, with public health campaigners hoping this will spark a nationwide ban in the coming years.
Read more
Advocacy groups condemn EU Commission for backpedalling on animal rights
3 Oct 2023
Amid rumours that the EU may abandon its plans to improve animal welfare in farming and end the use of cages, many stakeholders have condemned this possibility and urged the EU to reconsider.
Read more
Poland and Ukraine attempt to resolve grain dispute
29 Sep 2023
Poland and Ukraine have begun talks to try to resolve a dispute regarding the ban on Kyiv’s grain imports that prompted Kyiv to file a lawsuit to the World Trade Organization.
Read more
The EU may be set to scrap its sustainability commitments
27 Sep 2023
A speech delivered by President Ursula von der Leyen last week inferred that the EU could be drawing back on its commitments to create a more sustainable and healthier food system.
Read more
Industry first: Mosa Meat becomes first cultivated meat startup to gain B Corp certification
11 Sep 2023
A first for the industry, Dutch cultivated meat company Mosa Meat announced that it has received B Corp certification and will soon apply for regulatory approval across the globe.
Read more
German supermarket trials climate-centric pricing model
29 Aug 2023
German discount supermarket Penny has trialled increasing product prices to mirror their health and environmental costs.
Read more
EPR fee delay spurs concerns over UK’s sustainability commitment
8 Aug 2023
The UK government’s decision to push back the introduction of fees for the Extended Producer Responsibility (EPR) due to inflation has raised doubts about whether this sustainability commitment will ever be realised.
Read more
Latino-owned food startups tackle climate change
25 Jul 2023
A growing list of Latino-founded food and beverage startups in the US are putting sustainability at the forefront of their businesses for the sake of the planet.
Read more
Industry first: The Netherlands approves cultivated meat and seafood tastings
17 Jul 2023
The Netherlands has become the first country in Europe to approve tastings of cultivated meat and seafood in controlled environments, yet there is still a long way to go before widescale commercialisation is achieved.
Read more