Group targets firms in bid to become world leader
Kerry Group managing director Hugh Friel said that while there was a very busy acquisition pipeline in place he did not expect all of them to come to fruition.
“Time is not a factor, getting the right companies is,” he said.
Kerry has been very acquisitive over the last three years, adding 22 small sized companies, mostly in the US, to its growing portfolio.
“The companies in view are very much of the same order. Adding small companies ensures a 100% fit unlike bigger companies where not all the businesses may fit,” he said.
Mr Friel said that despite buying three companies in the US at a cost of €125 million this year, the Kerry Group is always on the lookout for a major acquisition but said there is nothing of this size on the horizon at present.
Kerry Group has been busy over the last four years spending hundreds of millions of euro buying companies that supply convenience foods, health snacks and flavourings. The acquisitions are part of its strategy to make it a world leader as a maker of food ingredients for retailers such as Starbucks Corp and multi-nationals like Pepsico.
The company has this year purchased SunPure, a Florida-based maker of citrus flavours, for $68m and spent $67m on purchasing Guernsey Bel and Pacific Seasonings.
Kerry could spend as much as €270m on acquisitions this year, buying small to medium-sized companies to increase the size of its portfolio.
Mr Friel said Kerry would like to make a major acquisition like one of its peers on the world stage but he cautioned that cost would be a determining factor as the company would expect to pay a premium for any of the major companies it would like to buy.
