Kerry Group plc, the global taste & nutrition company, announced that it has reached agreement to acquire Niacet Corp from an affiliate of funds advised by SK Capital Partners, for €853m on a cash-free, debt-free basis, subject to customary closing adjustments.
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. Niacet is differentiated by its proprietary drying and granulation process technologies in its key market categories of bakery, meat and pharma. The business has customers in over 75 countries and key manufacturing sites in Niagara Falls (USA) and Tiel (The Netherlands).
Following the acquisition, Niacet will be integrated into Kerry’s global food protection and preservation platform.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. The resulting revenue synergies are expected to enable the Niacet business to significantly outperform the market and deliver at least mid-to-high single digit volume growth.
Edmond Scanlon, CEO of Kerry, commented, “the acquisition of Niacet’s complementary product portfolio enhances our leadership position in the fast growing food protection and preservation market and significantly advances our sustainable nutrition ambition.”
“Niacet is a business with market leading positions, differentiated technologies and a strong and highly experienced management team. We are pleased to welcome the Niacet team to Kerry and we are excited at the potential the combination of our two businesses offers to outperform in this important and attractive market.”
Kelly Brannen, CEO of Niacet, commented, “we are proud of the rich heritage we have built in Niacet, dating back to when my family purchased Niacet in 1978. This transaction affirms the reputation we have developed as a trusted industry leader with a long-dated track record of making the highest quality products in the market.”
“Our constant focus on innovation has been key to the development and success of our new clean label products. I’d like to thank our employees for their dedication and commitment and SK Capital for its support throughout its ownership period.”
“In partnership, we have strengthened and grown the company substantially, while establishing the next phase of Niacet’s growth. We view the sale to Kerry as a perfect fit. It will allow Niacet to grow at a much faster rate and sell in new markets around the world. We are very pleased to become part of the Kerry family.”
Source: Kerry Group