Kerry Foods

Kerry goes on US acquisition spree

Kerry has acquired US-based Red Arrow Products, Island Oasis and Biothera’s Wellmune business, significantly expanding the group’s portfolio of taste and nutrition solutions for global food, beverage and pharmaceutical applications. The transactions are valued at $735m. In the financial year 2014, the businesses being acquired had annual revenues of $301m and EBITDA of $59m.

Red Arrow Products is a supplier of natural smoke flavours and natural savoury grill flavours serving meat, culinary and food industry markets worldwide.

Headquartered in Manitowoc (WI), Red Arrow operates from manufacturing facilities in Manitowoc (WI) and Rhinelander (WI) supported by application & development Centres in Germany and Sweden.

Combined with Kerry’s recent acquisition of Wynnstarr Flavors and KFI Savoury (the US-based savoury business of Kraft Food Ingredients), the acquisition of Red Arrow will further strengthen Kerry’s taste, technology and savoury flavour industry leadership, the company said. The acquisition, subject to regulatory approval, is expected to complete in early December.

Island Oasis is a provider of all-natural premium cocktail mixes and customised beverage solutions serving ‘on-premise’, restaurant, leisure and hospitality segments of the US market.

Distributed and marketed though national and regional chains, QSRs and independents; the Island Oasis portfolio includes frozen and shelf-stable fruit purées, coffee blends, performance nutrition beverage systems and customised ‘on-premise’ beverage equipment.

Headquartered in Walpole (MA), the business operates from manufacturing facilities in Byesville (OH) and Buffalo (NY). The acquired business’s brands, including Island Oasis, Fuel and Barista Fria, complement Kerry’s existing branded foodservice offerings (including DaVinci Gourmet, Big Train, Oregon Chai, Golden Dipt and Gold Ladle), broadening, said Kerry, the group’s market reach and service in fast growing segments of the foodservice channel.

Biothera’s Wellmune business produces and markets the Wellmune branded natural food, beverage and supplement ingredient said to be clinically proven to strengthen the immune system – improving health and wellness.

Kosher, Halal, non-allergenic, GMO-free, gluten-free and ‘Informed Sport’ certified, Wellmune is formulated in a growing number of food, beverage and supplement products in more than 50 countries throughout the world. The acquired business broadens Kerry’s functional nutritional ingredients and wellness portfolio and is said to complement the group’s taste solutions for food, beverage and supplement applications.

“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,” said Stan McCarthy, Kerry Group Chief Executive.

“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.”