Kerry in talks to buy Cargill’s flavours arm

Posted by Nicole Eckersley on 18th July 2011

Ireland’s Kerry Group yesterday revealed it is in exclusive talks to buy Cargill’s flavours business.

The Ireland-based company, which owns consumer brands like Wall’s sausages but derives over two-thirds of its revenue from food ingredients, said a deal would “advance” its ability to serve food and drink manufacturers.

“Kerry is a leading global food ingredients and flavours provider and a leader in development and delivery of consumer-preferred taste solutions. The acquisition of Cargill Flavor Systems would again advance Kerry’s capability to provide unrivalled innovative integrated customer solutions across all food and beverage end-use-markets and extend the group’s market spread in emerging markets,” Kerry chief executive Stan McCarthy said.

Kerry said Cargill a “global customer base” and had flavour development and application centres in 22 countries.

It added, however, that the talks “may or may not result” in a deal being struck.

In March, Kerry CFO Brian Mehigan said the company could look to spend up to EUR1.5bn (US$2.12bn) on acquisitions in 2011. He also indicated that Kerry wanted to have a “bigger footprint” in emerging markets, where its generates 25% of its food ingredients revenues.

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