Kerry Group acquires three US businesses for $735m

The Tralee-based Kerry Group has acquired three US businesses, namely Red Arrow Products, Island Oasis, and Wellmune, for a total amount of $735m, as part of its strategy to boost its core ingredients and flavours business, and expand its presence in the nutritional solutions segment.

The transaction has been funded by Kerry’s existing credit lines.

Each of these companies is considered a leading player in the ingredients sector. Red Arrow Products supplies natural smoke and savoury grill flavours to several food companies, Island Oasis offers cocktail mixes and customised beverage solutions, and Wellmune produces and markets functional nutritional ingredients.

The acquisition of Red Arrow Products, which is based in Manitowoc, Wisconsin, is subject to regulatory approval, and is expected to be completed in early December this year. The company has manufacturing facilities in Manitowoc and Rhinelander, Wisconsin, as well as application and development centres in Germany and Sweden.

Island Oasis is based in Walpole, Massachusetts, and has manufacturing facilities in Byesville, Ohio, and Buffalo, New York.
Wellmune has been acquired from St Paul, Minnesota-based Biothera Inc.

Kerry Group CEO Stan McCarthy said: "The acquisitions of Red Arrow, Island Oasis and Wellmune, as well as significantly expanding our taste and nutritional solutions portfolio, bring a number of important innovative technology platforms to Kerry.

"Complementing our existing taste and nutrition leadership positioning and growth strategies, the businesses being acquired present tremendous growth opportunities throughout Kerry’s global developed and developing markets."

In 2014, the acquired entities had a combined revenues of $301m with earnings on an EBITDA basis of $59m in total.