Advent-backed IRCA in talks to buy Kerry’s Sweet Ingredients Portfolio

• The merger is likely to deliver €1 billion in revenues, a global presence, and a sizable footprint in the US, the firms said
• Proposed sale is expected to close in the first half of 2023
• Kerry plans use the money raised from the sale for general business needs and expansion

Advent International portfolio company IRCA has started talks to acquire Kerry Group’s Sweet Ingredients Portfolio for €500 million, comprising an initial cash consideration of €375 million and a €125 million interest bearing vendor loan note.

Sweet Ingredients is a producer of sweet and cereal items with a focus on Europe and the US. It operates six locations across the UK, the Netherlands, Germany and France in addition to four production facilities in the US (in Illinois, Kansas, Missouri, and California).

This merger will likely result in €1 billion in revenues, a global presence, and a sizable footprint in the US, the firms said. Additionally, the proposed sale would solidify IRCA’s standing in the industry and broaden its selection of high value ingredients.

Sweet Ingredients’ forecasted revenue and EBITDA for the year ending 31 December 2022 were €405 million and €41 million, respectively.

The potential sale is anticipated to close in the first half of 2023 following employee consultation and information processes and receipt of regulatory approvals.

The acquisition would be IRCA’s third since Advent purchased it in July, following Anastasi Group, an Italian pistachio ingredients company, and Cesarin, an artisanal fruit-based ingredients company.

Kerry, headquartered in Tralee, Ireland, intends to use the money from the prospective sale for general business needs and the company’s expansion.

IRCA, an Italian producer of specialty ingredients for artisanal pastries, cakes, and gelatos, distributes its products across more than 100 countries and runs 13 production facilities in Italy, the US, Belgium, and Vietnam. It is headquartered in Gallarate.

Advent is a global private equity investor that has made more than 400 private equity investments across 41 countries. The firm, headquartered in Boston, managed €90 billion in assets under management as of 30 September.