Kerry Acquires Food Preservation Specialist Niacet
Global food giant Kerry Group has entered into an agreement to acquire Niacet Corp. from an affiliate of funds advised by private equity firm SK Capital Partners and other shareholders, for €853 million.
Niacet is a major producer of propionates and acetates focused on the pharmaceutical, food and feed industries. The company has key manufacturing sites in Niagara Falls, New York, USA (also its headquarters), and Tiel, the Netherlands, with customers in more than 75 countries.
Kerry said Niacet holds “clear leadership positions in pharma and bakery, and cost-effective low-sodium preservation systems for meat and plant-based food.” It added that the new acquisition’s complementary capabilities will enhance Kerry’s food protection and preservation strategy to offer new products and technologies in a broader market.
“The acquisition of Niacet’s complementary product portfolio enhances our leadership position in the fast-growing food protection and preservation market and significantly advances our sustainable nutrition ambition,” commented Kerry’s CEO Edmond Scanlon.
Kelly Brannen, Niacet’s CEO and significant minority owner, added: “We view the sale to Kerry as a perfect fit. It will allow Niacet to grow at a much faster rate and sell in new markets around the world.”
The Brannen family purchased Niacet from Union Carbide in 1978, subsequently growing the company into a global leader. SK Capital has owned the company, along with Brannen, since February 2017.
For the year ending Dec. 31, 2021 Niacet is expected to have pro forma annualized revenue of about $220 million and EBITDA of approximately $66 million. Kerry expects that revenue synergies will enable the business to significantly outperform the market and deliver at least mid-to-high single-digit volume growth.
Following the acquisition, which is expected to close by the end of the third quarter of 2021, Niacet will be integrated into Kerry’s global food protection and preservation platform.
Elaine Burridge, Freelance Journalist
