TRALEE, IRELAND – Kerry Group PLC is negotiating with IRCA about the sale of Kerry’s sweet ingredients portfolio for €500 million ($537 million). The portfolio serves bakery, cereal, confectionery, dairy and ice cream markets in Europe and the United States.

IRCA is internationally active in chocolate creams and other semi-finished food ingredients.

The sweet ingredients portfolio was expected to attribute revenues of €405 million and EBITDA of €41 million ($44 million) to Tralee-based Kerry Group in the fiscal year ended Dec. 31, 2022. The portfolio has four manufacturing facilities in the US and six facilities across the United Kingdom, The Netherlands, Germany and France. Products include sweet particulates, chocolate confectionery items, baked inclusions, variegates and fruit purees.

The companies expect the potential sale to close in the first half of the year following employee consultation and information processes and receipt of regulatory approval.

“This transaction would represent another strategic development in Kerry’s evolution as we continue to look to enhance and refine our taste and nutrition portfolio, aligned to the areas where we can create the most value,” said Edmond Scanlon, chief executive officer of Kerry Group.

IRCA, based in Gallarate, Italy, distributes its products across more than 100 countries and runs 13 production facilities in Italy, the US, Belgium and Vietnam. The combination of IRCA and Kerry’s sweet ingredients portfolio is expected to create a global leader in semi-finished food ingredients with about €1 billion ($1.07 billion) in revenues, an international footprint and a significant presence in the US.

“We are delighted to partner with Kerry on this transaction and look forward to its successful conclusion,” said Massimo Garavaglia, CEO of IRCA. “The sweet ingredients portfolio is a high-quality business with a differentiated set of technologies, and we are excited to welcome their talented team who, we believe, share our passion and drive to deliver the best for their customers and consumers. This acquisition would represent a strong fit with our portfolio, with its highly complementary product and technological capabilities, and help us to become a truly global player.”

This potential acquisition would represent IRCA’s third since it was acquired by Advent International, a global private equity investor, in July 2022. Other acquisitions were Anastasi Group, an Italian pistachio ingredients company, and Cesarin SpA, an artisanal fruit-based ingredients company.