Kerry Agrees to Acquire Breeo Foods
The proposed acquisition includes an attractive portfolio of leading added-value dairy and meat product brands which are household names in Ireland.
14/03/08 Kerry, the global ingredients & flavours and consumer foods group, announced its agreement, subject to regulatory approval, to acquire Breeo Foods, a subsidiary of Irish based Reox Holdings plc.
The proposed acquisition includes an attractive portfolio of leading added-value dairy and meat product brands which are household names in Ireland. Breeo Foods’ brands, including Dairygold, Galtee, Shaws, Roscrea, Mitchelstown, Calvita and Sno, are marketed through all retail channels in Ireland including multiple retail, symbol group and food-to-go outlets. Complementing Kerry Foods’ chilled foods branded offering on the Irish market and Kerry’s distribution network, the proposed acquisition also includes Breeo Foods’ chilled foods distribution service.
The total consideration payable on completion of the proposed transaction is €165m. On a proforma basis per the last reported accounts, the business being acquired had revenue of €188.5m, gross assets before liabilities of €58.5m and after adjusting for exceptional items, interest and depreciation, the EBITDA of the business being acquired was €15.1m. The impact of the acquisition on the Group is subject to the timing of the completion of the transaction and is not expected to have a material impact on Group earnings per share in the current year.
