Kerry Group to acquire organic salts producer Niacet for €853m
Kerry Group, an Irish taste and nutrition company, has agreed to acquire Hare Topco, Inc. trading as Niacet, a global organic salts producer, for €853 million.
The sellers of Niacet are an affiliate of funds advised by SK Capital Partners and other shareholders.
Niacet is engaged in developing technologies for preservation, serving the bakery and pharma industries along with low-sodium preservation systems for meat and plant based food across conventional and also clean label solutions.
The organic salts producer had developed drying and granulation process technologies in its core market categories of bakery, pharma, and meat.
Niacet caters to customers in more than 75 countries and its key manufacturing plants are located in Niagara Falls in the US and Tiel in The Netherlands.
For the year ended 31 December 2021, Niacet is anticipated to have pro forma annualized revenue of around $220 million.
Kelly Brannen – CEO and significant minority stakeholder of Niacet said: “We are proud of the rich heritage we have built in Niacet, dating back to when my family purchased Niacet in 1978.
“This transaction affirms the reputation we have developed as a trusted industry leader with a long-dated track record of making the highest quality products in the market. Our constant focus on innovation has been key to the development and success of our new clean label products.”
Post-acquisition, Niacet will be integrated into the global food protection and preservation platform of Kerry Group.
The Irish taste and nutrition company said that the addition of the complementary capabilities of Niacet will boost its food protection and preservation strategy to provide new products and technologies in a wider market.
Kerry Group said that the resulting revenue synergies are anticipated to enable Niacet to considerably outperform the market and generate at least mid-to-high single digit volume growth.
Edmond Scanlon – CEO of Kerry Group said: “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.
“Niacet is a business with market leading positions, differentiated technologies and a strong and highly experienced management team. We are pleased to welcome the Niacet team to Kerry and we are excited at the potential the combination of our two businesses offers to outperform in this important and attractive market.”
The deal, which is subject to regulatory approvals and customary closing conditions, is anticipated to be wrapped up by the end of Q3 2021.
Earlier this month, Kerry Group signed a deal worth €819 million to sell its consumer foods’ meats and meals business in the UK and Ireland to Pilgrim’s Pride.