Kerry Group Completes Acquisition of Breeo Foods

The proposed transaction includes an attractive portfolio of leading added-value dairy and meat product brands which are household names in Ireland – including Dairygold, Galtee, Shaws, Roscrea, Mitchelstown, Calvita and Sno.

27/03/09 Kerry, the global ingredients & flavours and consumer foods group, has announced the completion of the acquisition of Breeo Foods, a subsidiary of Irish based Reox Holdings plc. As confirmed on 19 March, the transaction was completed for a total consideration of €140m.

Last week Kerry, welcomed the decision of the High Court to annul the Determination of the Competition Authority of Ireland to prohibit the Group’s proposed acquisition of Breeo Foods. The Competition Authority had blocked the €165 million acquisition on August 29, 2008 saying that it would “substantially lessen competition” in the consumer foods market, in particular in bacon, processed cheese and non-poultry cooked foods.

The proposed transaction includes an attractive portfolio of leading added-value dairy and meat product brands which are household names in Ireland – including Dairygold, Galtee, Shaws, Roscrea, Mitchelstown, Calvita and Sno.

“The business being acquired is entirely complementary to our Kerry Foods’ chilled foods branded offering on the Irish market and our national chilled foods distribution service. I believe we can achieve significant synergies in combining both chilled foods’ businesses which will benefit all stakeholders including consumers”, Kerry CEO Stan McCarthy said. He added “I expect the transaction to be EPS neutral in the current year and to be earnings positive in 2010.”