(Alliance News) - Kerry Group PLC on Monday said it has bought food preservation firm Niacet Corp, days after agreeing the sale of its Consumer Foods' Meats & Meals business in the UK and Ireland.
The Tralee, Ireland-based firm said it has acquired Hare Topco, which trades as Niacet, for EUR853 million. The preservation technology firm, which has manufacturing sites in Niagara Falls, US and Tiel, Netherlands, will join Kerry's global food protection and preservation arm.
"The addition of Niacet's complementary capabilities will enhance Kerry's food protection and preservation strategy to offer new products and technologies in a broader market," Kerry said.
"Niacet is a global market leader in technologies for preservation. It has clear leadership positions in bakery and pharma, and cost-effective low-sodium preservation systems for meat and plant based food across both conventional and clean label solutions," the company added.
Kerry said that in 2021, Niacet is expected to have pro forma annualised revenue of around USD220 million and earnings before interest, tax, depreciation and amortisation of USD66 million. According to Kerry, this represents an earnings before interest, tax, depreciation and amortisation margin of around 30%.
Kerry has bought Niacet from funds advised by SK Capital Partners. The deal is expected to close in the third quarter of 2021.
Kerry plans to repay the bridge facility with proceeds from the sale of its Meats & Meals business to Pilgrim's Pride for around EUR819 million, announced last Thursday and due to be completed in the fourth quarter of 2021.
Kerry Group shares were trading up 3.1% at EUR109.55 each in London on Monday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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