Kerry Group, the global ingredients & flavours and consumer foods group, confirmed that it has entered into an agreement to acquire Cargill's global flavors business. Cargill Flavor Systems with annual revenues of approximately US$200m is being acquired by Kerry for a consideration of US$230m subject to closing adjustments.
Cargill Flavor Systems has well-established international flavor technology development expertise serving a global customer base through provision of flavor ingredients and flavor systems for beverage, dairy, sweet and savory applications. The business has long-standing relationships with leading global food and beverage manufacturers and employs 700 people through its integrated flavor development and application centers in France, the UK, South Africa, India, Malaysia, China, the USA, Puerto-Rico, Mexico and Brazil, supported by a network of sales representative offices in 12 other countries.
The acquisition of Cargill Flavor Systems will strengthen Kerry's capability to provide integrated customer solutions across all food and beverage end-use-markets and extend the Group's market spread in emerging markets.
The transaction which is subject to regulatory approval is expected to be completed by year-end.
Mid July, Cargill announced the intention to sell its global flavors business to Kerry, the ingredients & flavours and consumer foods group. Both parties entered into exclusive negotiations which have now culminated in the signing of a definitive sales agreement.
Kerry Group announced that it was in exclusive discussions with Cargill to acquire Cargill Flavor Systems. Kerry Group is the global leader in food ingredients & flavours serving the food and beverage industries and a leading consumer foods processing and marketing organization in selected EU markets. Serving a wide customer base in 140 countries, Kerry employs some 23,000 people across the Group's manufacturing and product development facilities in 23 countries and its network of international representative offices. Kerry Ingredients & Flavours develops, manufactures and delivers technology-based ingredients, flavors and integrated solutions for food, beverage and pharmaceutical markets.