FDBusiness.com

Ireland: Kerry Group In Talks To Acquire Cargill’s Flavours Business

 Breaking News
  • Coca-Cola HBC to Acquire Italian Water and Sparkling Beverages Company in €88 Million Deal Coca‑Cola HBC has agreed to acquire Acque Minerali, a privately-held natural mineral water and adult sparkling beverages business based in Italy. The acquisition is being made in conjunction with The Coca-Cola Company, in-line with previous similar acquisitions. The total enterprise value payable by Coca‑Cola HBC and The Coca‑Cola Company, subject to customary closing adjustments, amounts [...]...
  • Britvic Signs Up to Science Based Targets Initiative Britvic has pledged to pursue bolder greenhouse gas (GHG) emission reduction targets by signing up to the Science Based Targets initiative. Britvic joins around 600 leading companies from around the world in formally committing to independently verified science-based GHG emission reduction targets. Britvic’s A Healthier Everyday sustainability strategy recognises climate change as one of the biggest threats facing [...]...
  • Marks & Spencer Partners Infarm to Bring Urban Farming to London Stores M&S Food is partnering with infarm – one of the world’s most advanced urban farming platforms – to deliver a range of fresh produce grown and harvested in a selection of the retailer’s London stores. Customers will now find a range of fresh herbs – including Italian, Greek and Bordeaux Basils, Mint, Curly Parsley and Mountain [...]...
  • Coca-Cola European Partners to Remove 4,000 Tonnes of Single-use Plastic by Swapping Shrink Wrap For Cardboard in Western Europe Coca-Cola European Partners, will be replacing plastic shrink wrap with cardboard for its can multipacks across Western Europe, removing approximately 4,000 tonnes of single-use plastic per year across the region. This is the latest move in Coca-Cola’s commitment to tackle packaging waste and remove all unnecessary single-use plastic from its secondary packaging. Plastic shrink wrapping is used [...]...
  • EU Leading in Global Agri-food Trade The EU has been confirmed for yet another year in its position as the largest global exporter of agri-food products, with sales reaching €138 billion in 2018. Agriculture products represent a solid share of 7% of the value of EU total goods exported in 2018, ranking fourth after machinery, other manufactured goods and chemicals. Agriculture and [...]...

Ireland: Kerry Group In Talks To Acquire Cargill’s Flavours Business

July 11
11:25 2011

Kerry Group is in talks to buy the US agribusiness giant Cargill’s flavours unit, the company said on Friday, as it expands further into the higher-margin ingredients sector. The talks are expected to last between four and six weeks, but neither company commented on the value of the acquisition, which would add around 700 employees to Kerry’s current 20,000 headcount.

Kerry, Ireland’s third biggest listed company by market capitalisation, earned about two thirds of its €4.96bn of revenues last year from its ingredients and flavours business.

NCB Stockbrokers analyst Darren Greenfield said the Cargill ingredients business, which has revenues of around US$200m, might cost in the region of €250m to €350m. “This would be a good acquisition. It could add another 4 or 5% to earnings and keep growing the business,” Greenfield said. “Kerry are very bullish on acquisitions in the ingredients space, which has margins of around 10-15%.”

Commenting on the discussions, Kerry Group Chief Executive Stan McCarthy said: “Kerry is a leading global food ingredients and flavours provider and a leader in development and delivery of consumer preferred taste solutions. The acquisition of Cargill Flavor Systems would again advance Kerry’s capability to provide unrivalled innovative integrated customer solutions across all food and beverage end-use-markets and extend the Group’s market spread in emerging markets”.

Kerry, whose brands include Wall’s sausages, Homepride flour and Cheesestrings snacks, said last month it expected volume growth in ingredients and flavours will be roughly double that of the consumer food sector. The firm is one of the largest producers of cheese ingredients and has significant operations in savoury and sweet ingredients.

About Author

colin

colin

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements