American agribusiness company Cargill has completed the sale of its global flavours business to Kerry, an Irish food ingredients and flavours group, in a deal worth $230m.
Cargill said the transaction, which includes activities in 22 countries and production facilities in three continents, has been concluded after both companies received clearance from competition authorities.
Following extensive discussions in July, Kerry entered into an agreement to acquire Cargill’s global flavours business Cargill Flavor Systems in September 2011.
In October, the Irish Competition Authority approved the planned acquisition, stating that the deal will not lessen the competition in any markets for goods or services in Ireland.
According to Kerry, the acquisition strengthens its capability to provide integrated customer solutions across all food and beverage end-use markets and extends its presence in emerging markets, where it generates 25% of its revenues from food ingredients business.
Cargill Flavor Systems, which has an annual revenues of $200m, offers flavour ingredients and flavour systems for beverage, dairy, sweet and savoury categories, such as cheese, yoghurts and ice creams.
It employs 700 people in application centres in France, UK, South Africa, India, Malaysia, China, US, Puerto-Rico, Mexico and Brazil, and has a network of sales representative offices in 12 other countries.
Kerry, a global provider of food ingredients and flavours and a leading consumer foods processor in the UK and Ireland, owns brands including Denny, Dairygold, Galtee, Calvita, Roscrea, Kerrymaid, Cheestrings and Richmond.
Kerry’s flavours division develops, manufactures and delivers technology-based ingredients, flavours and integrated solutions for food, beverage and pharmaceutical markets.
The unit, which is a leading producer of cheese ingredients with significant operations in savoury and sweet ingredients, accounted for nearly 60% of Kerry’s €5bn ($6.73bn) revenue and 75% of profits in 2010.
Source: Food Processing Technologies