Kerry acquires Fleischmann’s Vinegar Company and AATCO Food Industries, in €365 million investment
25 Oct 2018 --- Kerry, the global taste and nutrition and consumer foods group, has reached an agreement to acquire Fleischmann’s Vinegar Company Inc and AATCO Food Industries LLC, in conjunction with its Investor Day in Singapore. According to Kerry, these acquisitions further expand the group’s foundational technology portfolio, as well as strengthening its foodservice and developing markets positioning, in line with its strategic growth priorities. The total consideration for the acquisitions is expected to be €365 million (US$416.6 million).
Both Fleischmann’s Vinegar Company, Inc. and AATCO Food Industries LLC have annualized revenues of approximately €150 million (US$171.1 million).
The group will finance the acquisitions from existing lines of credit. It is anticipated that the transactions will be completed prior to year-end, subject to routine regulatory and closing conditions.
Fleischmann’s Vinegar Company, Inc. is a USDA certified all-natural producer of specialty ingredients that further support Kerry’s taste and clean label strategies across a number of end-use markets. It is headquartered in California and has manufacturing facilities in Washington, New York, Maryland, Illinois, Missouri, Alabama and California.
“The acquisition of Fleischmann's Vinegar Company provides Kerry with significant opportunities for differentiated product development. It supports our strategic approach to continued investment in expanding our clean label portfolio, creating from food for food solutions that are fully aligned with the needs of today’s consumer. Over the past one hundred and fifty years, Fleischmann’s has built a strong and enviable reputation for product quality and excellence. We look forward to building on this reputation further,” comments Neil Cracknell, President, Functional Ingredients & Actives at Kerry.
AATCO Food Industries LLC is a leading provider of culinary sauces to the foodservice channel. Headquartered in Muscat, Oman with manufacturing facilities in Sohar, Oman, Jeddah, Saudi Arabia and Nashik, India.
Kerry says that the acquisition of AATCO Food provides it with a platform for business development in the Middle East and Africa.
“The acquisition of AATCO marks a significant milestone for Kerry, enabling the group to deliver local, better tasting, more nutritious food experiences across this region, in line with customer and consumer needs,” commented John Savage, President & CEO Kerry APMEA.
FoodIngredientsFirst has reached out to Kerry for further comments on the business moves.
