Kerry expands platform with $440m Quest deal
Food group Kerry has bought Quest Food Ingredients from the ICI Group for $440m (€355m).
Quest food had revenues of $255m (€206m) in 2003 and the Kerry deal will also see it acquire a 50% investment in a joint venture manufacturing unit in Esterol, Malaysia, for $150m.(€121m).
The deal is expected to be completed by the second-half of this year.
Sales in European markets accounted for 40% of Quest’s ingredients sales with North American markets recording 38% of total sales.
Asia Pacific markets make up 10% of sales while the rest of the world markets accounted for 12% of total sales.
Commenting on the deal, Kerry Group Chief Executive Hugh Friel said :The acquisition of Quest Food Ingredients, as well as expanding our position in taste and texture ingredients, brings a number of important new technology platforms to Kerry.
"With the increasing focus by the global food industry on the key areas of health, nutrition and food safety, this acquisition means additional exciting growth opportunities for the Group.
"In particular Quest has a long standing relationship with the pharmaceutical industry – through hydrolysed proteins used in cell tissue culture, specialist ingredients for tabletting, therapeutic and nutritional products.
"Complementing our existing ingredients businesses, Quest has an excellent geographic market spread – extending Kerry’s market reach particularly in Eastern European and Asian markets and adding a new list of global customers," Friel added.
