‘Day will come when we will make a large acquisition’

KERRY Group will be in a position to complete a €1 billion acquisition by the end of 2010, according to chief executive Stan McCarthy.

However, he does not want the group to be distracted from a big or “highly leveraged acquisition” in the current year, he said.

“We’re experiencing very good organic growth and I don’t want to lose sight of that or distract the organisation from that,” he said.

He added that the group’s “go-to-market” strategy introduced since he took over as Kerry CEO has been “key” to getting the group to where it is at present. He wanted to avoid a highly leveraged type acquisition that would restrict the group from doing medium-sized acquisitions that would fit the business model very well, he said in an interview after a press conference in Dublin to announce the 2009 results.

There were plenty of large private companies out there that fit that immediate need, he said.

In the final analysis he said a major deal will be done.

“There will be no ifs, buts and whens; this model is built for acquisition. It’s a question of when,” he said.

“By the end of 2010 we could take a €1bn straight acquisition without interfering with the strength of the balance sheet.”

The group has a very strong balance sheet and the day will come “when we will have to make that large acquisition”, he said. He admitted to an interest in buying Kraft’s ingredients business were it to come on the market.

Kraft are understood to have a strong interest in the business and are unlikely to be sellers even if they gain control of Cadbury’s.

He ruled out a hostile bid when he announced the group’s 2009 results in Dublin yesterday.