Kerry Group has agreed to buy food preservation ingredients firm Niacet for €853m.
The US company – which is a global leader in food preservation technology – is currently owned by private equity firm SK Capital Partners.
The news comes hot on the heels of Kerry agreeing to sell most of its consumer foods business for €819m.
Late last week, Kerry said that it is selling its meats and meals business in Ireland and the UK – covering such well-known brands as Galtee, Denny, Richmond and Fridge Raiders – to US food multinational Pilgrim’s Pride, as it looks to further focus its business on its core taste and nutrition line.
The Niacet acquisition is reliant on regulatory approval, but is expected to complete by the end of the third quarter.
Kerry will pay using existing funds and a bridge facility, which will be paid from proceeds from the sale of its meats and meals business. Kerry said the impact of the deals on its net debt-to-earnings ratio this year will be minimal.
Niacet is targeting revenues of around $220m (€185m) this year, and earnings of around $66m. The company has customers in more than 75 countries.
Following closure of the deal, Niacet will be integrated into Kerry’s global food protection and preservation platform.
“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,” said Kerry CEO Edmond Scanlon.