Kerry Set to Acquire Dera

The moves comes as part of the acquisition of two further companies Prima S.A. and G. Adams Pastry – Spalding (UK) based cooked pastry products business. Kerry will acquire the three businesses for a total consideration of €98m.

24/02/09 The Kerry Group is set to acquire Dera Holding NV – a savoury flavourings business, with manufacturing facilities located in Belgium, the UK and the Czech Republic, serving meat, processed foods, bakery and confectionery end-use-markets in Europe and the Middle East. Kerry spokesperson Frank Hayes told FoodIngredientsFirst.com that the Dera acquisition is virtually finalized and is merely a regulatory formality in Eastern Europe to be concluded in the next day or so.

The moves comes as part of the acquisition of two further companies Prima S.A. – a Costa Rican based savoury ingredients and flavours business providing a platform for growth in the Central American food processing and meat industries and G. Adams Pastry – Spalding (UK) based cooked pastry products business, strengthening Kerry Foods’ manufacturing capability in the UK pastry market. Kerry will acquire the three businesses for a total consideration of €98m.

DERA is an ingredient based solution provider for the food industry, with a business focussed on processed meat and convenience foods. The company can offer solutions in meat products, fish products, prepared meals, cold and hot sauces or savoury snacks. “Dera is an ideal fit really as we extend our savoury flavours business and gives us a more solid presence in Russia. Dera has successfully built up a strong relationship in Eastern Europe and is a strong addition to our business there”, Hayes said.

Dera will be integrated into the Kerry savoury business, but Hayes stressed that it will be “business as usual”, for the company as they have good manufacturing facilities in place that they would like to maintain. “The new business will be added to our existing offering. There will hopefully be synergies and new development opportunities”, he added.

Kerry Group posted a 7 percent rise in full-year earnings on Tuesday and said it expected more growth this year despite consumers becoming more budget conscious. “We’ve had a good year and achieving strong volume growth in our businesses – the highest of our peer group. We will focus on cost recovery in 2008. There was a significant adverse recovery effect in 2008 but we are pleased with like-for-like growth,” Hayes said.

Expansion this year will be conducted on a technology platform, but further acquisitions may follow if opportunities arise. “We have a lot going on internally and we are unlocking real opportunities by combining ingredients and technology, with a unique focus on end use. This will be our focus in the months ahead”, Hayes said. However with a strong balance sheet and cash flow available “we are in a strong position to prevail of complementary business opportunities”, Hayes concluded.

By Robin Wyers