Kerry Confirms Talks to Acquire Cargill Flavor Systems
The Group is in exclusive discussion with Cargill which may, or may not result in the Group’s acquisition of Cargill’s global flavours business.
Jul 15 2011 --- Kerry Group, the global ingredients & flavours and consumer foods group, has confirmed that the Group is in exclusive discussion with Cargill which may, or may not result in the Group’s acquisition of Cargill’s global flavours business.
Kerry spokesman Frank Hayes told FoodIngredientsFirst.com that "at this stage we are well and truly in exclusive discussions," but no details of the size of the Kerry offer were disclosed by either company. A Cargill spokesperson confirmed that there were no rival bids to the Kerry offer. The Irish Independent reported that market sources suggest the Cargill business would be worth in the region of $200m (€141m).
Cargill Flavor Systems has well established international flavour technology development expertise serving a global customer base through provision of flavour ingredients and flavour systems for beverage, dairy, sweet and savoury applications. Through its network of modern integrated flavour development and application centres spanning 22 countries in North and South America, Europe, South Africa and Asia, Cargill Flavor Systems has long-standing relationships with leading global food and beverage manufacturers. The company employs around 700 people and works with customers globally to provide flavour ingredients and flavours for the beverage, dairy, sweet and savoury categories.
Commenting on the discussions to acquire Cargill’s global flavour business, Kerry Group Chief Executive Stan McCarthy said “Kerry is a leading global food ingredients and flavours provider and a leader in development and delivery of consumer preferred taste solutions. The acquisition of Cargill Flavor Systems would again advance Kerry’s capability to provide unrivalled innovative integrated customer solutions across all food and beverage end-use-markets and extend the Group’s market spread in emerging markets”.
Cargill confirmed that it has been approached by Kerry. Both companies are now engaging in the full consultation process with employee representative bodies in the relevant countries, a process which should take in the region of four to six weeks, a Cargill announcement stated.
