By Adria Calatayud
Kerry Group PLC said Monday that it has agreed to acquire Hare Topco Inc., trading as Niacet Corp., for 853 million euros ($1.01 billion), as it seeks to strengthen its food protection and preservation strategy.
The deal comes after the Irish nutrition company last week agreed to sell its consumer foods' meats and meals business in the U.K. and Ireland to Pilgrim's Pride Corp. for EUR819 million. Kerry said the addition of Niacet, which provides technologies for preservation and has strong positions in the bakery and pharma markets, will allow it to offer new products and technologies in a broader market.
Kerry said the acquisition will be accretive to sales growth and margins and is expected to benefit adjusted earnings from its first year. For 2021, Niacet is expect to generate earnings before interest, taxes, depreciation and amortization of around $66 million on revenue of around $220 million, Kerry said.
Niacet has customers in 75 countries and key manufacturing sites in Niagara Falls in the U.S. and in Tiel, the Netherlands, the buyer said.
The deal is expected to close by the end of the third quarter of 2021, subject to customary closing conditions and regulatory approvals, Kerry said.
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(END) Dow Jones Newswires