Kerry Agrees $230m Takeover of Cargill’s Flavor Business
The acquisition of Cargill Flavor Systems will strengthen Kerry’s capability to provide integrated customer solutions across all food and beverage end-use-markets and extend the Group’s market spread in emerging markets.
Sep 22 2011 --- Kerry Group, the global ingredients & flavours and consumer foods group has entered into an agreement to acquire Cargill’s global flavours business. Cargill Flavor Systems with annual revenues of approximately US$200m is being acquired by Kerry for a consideration of US$230m subject to closing adjustments.
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. The business has long-standing relationships with leading global food and beverage manufacturers and employs 700 people through its integrated flavour development and application centres in France, the UK, South Africa, India, Malaysia, China, the USA, Puerto-Rico, Mexico and Brazil, supported by a network of sales representative offices in 12 other countries.
The acquisition of Cargill Flavor Systems will strengthen Kerry’s capability to provide integrated customer solutions across all food and beverage end-use-markets and extend the Group’s market spread in emerging markets.
The transaction which is subject to regulatory approval is expected to be completed by year-end.
Mid July, Cargill announced the intention to sell its global flavors business to Kerry, the ingredients & flavors and consumer foods group. Both parties entered into exclusive negotiations which have now culminated in the signing of a definitive sales agreement.
