Kerry Group targets more acquisitions on the back of €853m US purchase

Kerry Group's chief executive said the business will increasingly evaluate acquisition targets in terms of sustainability impact on top of strategy and financial considerations.

Kerry Group CEO Edmond Scanlon

Kerry Group is actively targeting more acquisitions on the back of agreeing an €853m deal to buy US food preservation technology company Niacet.

The purchase of Niacet — which is expected to complete by the end of September — will hasten Kerry’s near-total shift away from consumer products to a taste and nutrition specialist. 

The Tralee-headquartered ingredients giant last week announced an agreement to sell the bulk of its consumer foods business for €819m. 

That move will, when complete, see ownership of such well-known brands as Galtee, Denny, and Richmond transfer to US multinational Pilgrim’s Pride.

Speaking to investors after the Niacet announcement, Kerry chief executive Edmond Scanlon said Kerry remains active regarding more potential acquisition activity.

"I would say the M&A pipeline continues to be quite strong," he said.

"Towards the end of 2020, we did flag the fact that in times of crisis, whether it was the financial crisis, whether it was the major regulatory changes like we saw in the US maybe four or five years ago, big changes like that in our industry typically create an environment that more transactions come to market.

"So we continue to be quite busy in terms of evaluating various opportunities," Mr Scanlon said.

Mr Scanlon also said Kerry will increasingly evaluate acquisition targets in terms of sustainability impact on top of strategy and financial considerations.

Kerry is also currently in the midst of attempting to acquire Biosearch Life, a Spanish-based nutraceutical company. Kerry’s food protection and preservation division is already long-established. 

Three years ago, it was boosted with the purchase of Fleischmann’s Vinegar Company along with an investment in its fermentation facility in Minnesota.