Kerry Group to sell its sweet ingredients portfolio to IRCA, a portfolio company of Advent International

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Kerry Group has entered into exclusive negotiations with IRCA, an international leader in chocolate, creams, and other semi-finished food ingredients, to sell the trade and assets of its sweet ingredients portfolio. This includes a range of products that span sweet particulates, chocolate confections, baked inclusions, variegates, and fruit purées, serving end markets such as bakery, cereal, confectionary, dairy, and ice cream in Europe and the U.S. Kerry’s sweet ingredient portfolio has an operational footprint that covers four manufacturing facilities in the U.S. and six across the U.K, the Netherlands, Germany, and France. According to Kerry, the expected attributable financial results for the year ending December 31, 2022 include revenues of €405 million and EBITDA of €41 million.

“We are pleased to have entered exclusive negotiations with IRCA, who have a strong track record of developing their business within the category,” said Edmond Scanlon, CEO of Kerry Group, in a press release. “This transaction would represent another strategic development in Kerry's evolution, as we continue to look to enhance and refine our Taste & Nutrition portfolio, aligned to the areas where we can create the most value.”

In addition to divesting of the sweet ingredients portfolio, Kerry has been actively acquiring brands that advance the company’s science and technology capabilities with a focus on sustainable nutrition. These include the biotechnology companies BioSearch and c-LEcTa, the botanical extract company Natreon, the enzyme production company Enmex, the probiotic company BioK, and the food protection and preservation specialist Niacet.

“We are delighted to partner with Kerry on this transaction and look forward to its successful conclusion,” said Massimo Garavaglia, CEO of IRCA, in a press release. “The sweet ingredients portfolio is a high-quality business with a differentiated set of technologies, and we are excited to welcome their talented team who, we believe, share our passion and drive to deliver the best for their customers and consumers. This acquisition would represent a strong fit with our portfolio, with its highly complementary product and technological capabilities, and help us to become a truly global player.”

This IRCA’s third acquisition since the company was acquired by Advent International, one of the largest global private equity investors, in July of 2022. The combined IRCA and Kerry’s sweet ingredients portfolio is expected to create a global leader in semi-finished food ingredients with about €1 billion in revenues.