Irish food ingredients company Kerry Group has acquired three U-based companies Red Arrow Products, Island Oasis and Biothera Inc’s Wellmune for $735m, a move that will usher the company’s growth in nutritional solutions market.
Each of the acquired companies holds significant international reach that will help Kerry Group in its growth strategy.
The Tralee-based company will finance the acquisition through its existing credit lines, reported Irish Examiner.
Headquartered in Wisconsin, Red Arrow is a supplier of natural smoke flavours and savoury grill flavours to several food companies. It operates manufacturing facilities from Manitowoc in Wisconsin and Rhinelander in Wisconsin supported by Application & Development Centres in Germany and Sweden.
The Red Arrow acquisition will complement Kerry's taste, technology and savoury flavour. Subject to regulatory approvals, the acquisition is slated to be complete in early December.
Island Oasis provides cocktail mixes and personalized beverage solutions for restaurant, leisure and hospitality segments in the US market. Its portfolio includes frozen and shelf-stable fruit purées, coffee blends, and performance nutrition beverage systems. The business has manufacturing facilities in Byesville in Ohio and Buffalo in New York. The acquired brands include Island Oasis, Fuel and Barista Fria which complement Kerry's current foodservice products.
Wellmune, which was owned by pharmaceutical company Biothera prior to the acquisition, is a producer and marketer of immune-strengthening ingredients for food and beverage industries. The company's products claim to be Kosher, Halal, non-allergenic, GMO-free, gluten-free and 'Informed Sport' certified. The acquisition will broaden Kerry's functional nutritional ingredients and wellness portfolio.
Together, the companies had combined revenues of $301m in 2014, with EBITDA earnings of $59m, Irish Examiner reported.
Kerry Group chief executive Stan McCarthy said: "The acquisitions of Red Arrow, Island Oasis, and Wellmune, as well as significantly expanding our taste and nutritional solutions portfolio, bring a number of important innovative technology platforms to Kerry."
He was further quoted by Irish Examiner as saying:"Complementing our existing taste and nutrition leadership positioning and growth strategies, the businesses being acquired present tremendous growth opportunities throughout Kerry's global developed and developing markets."
During the company's first-half results announcement in August, Stan McCarthy had mentioned that the group had been considering several acquisition opportunities and was looking to spend more than €500m through the year in 2015, reported Irish Examiner.
