Kerry Group acquires ingredients and sauces firms

Kerry Group has agreed to acquire US natural ingredients business Fleischmann's Vinegar Company and AATCO Food Industries, a culinary sauce supplier to the foodservice channel based in Oman.

Kerry said the deals would boost its technological capabilities, while strengthening its position in the foodservice sector and developing markets, in line with its growth strategy.

The total sum paid for the acquisitions is expected to be €365m (£322.7m) and the companies bought have annualised revenues of approximately €150m (£132.6m).

Finalised at year-end

The transactions are being financed from by existing loan facilities and are expected to be finalised before the end of Kerry’s financial year, subject to routine regulatory and closing conditions.

Fleischmann's Vinegar Company is certified by the US Department of Agriculture as an all-natural producer of specialty ingredients, supporting Kerry’s international taste and clean-label strategies. It is headquartered in California and has manufacturing facilities in Washington, New York, Maryland, Illinois, Missouri, Alabama and California.

AATCO Food Industries is based in Muscat, Oman with manufacturing facilities in Sohar, Oman; Jeddah, Saudi Arabia; and Nashik, India. The business would provide a platform for its business development in the Middle East and Africa, Kerry confirmed.