Kerry buys Cargill flavours division for €168m

Kerry Group confirmed that it is to buy the Cargill flavour business for $230m (€168m)

Kerry had announced it was in exclusive talks with the US giant during the summer.

The Cargill flavours arm has annual revenues of approximately US$200m and targets the beverage and dairy sectors as well as sweet and savoury food applications. The Irish ingredients groups said the acquisition will extend its market spread in emerging markets.

The move follows Kerry’s takeover of a German ingredients supplier earlier this month for an undisclosed sum.

SuCrest, with product lines targeted at the confectionery, bakery, ice-cream, cereal and snack sectors, has production facilities at Hochheim in Germany and Vitebsk in Belarus, and a sales office in Moscow.

It had reported annual revenue of €50n in the financial year ended 31 December 2010.

Frank Hayes, director of corporate affairs at Kerry said the SuCrest acquisition expands the group’s capacity in terms of sweet coatings, compounds and caramel technology.