Ireland's Kerry Group, one of the world's largest food ingredients, flavors and consumer products suppliers, agrees to buy Red Arrow Products, Island Oasis and Biothera Inc.’s Wellmune business in the U.S.
Based in Manitowoc, Wis., Red Arrow provides smoke and savory grill flavors for the meat, culinary and food industry markets while Island Oasis, Walpole Mass., supplies "natural" cocktail mixes and customized beverage solutions for on-premise, restaurant, leisure and hospitality segments. Island Oasis has manufacturing facilities in Byesville, Ohio and Buffalo, N.Y. St. Paul, Minn.-based Biothera says the Wellmune business produces and markets Wellmune-branded natural food, beverage and supplement ingredients to strengthen the immune system.
In the financial year 2014, the businesses being acquired are reported to have had annual revenues of $301 million and earnings before interest, taxation, depreciation and amortisation (EBITDA) of $59 million.
Kerry, headquartered in Tralee, Ireland, says it will finance the acquisitions from existing credit lines. The purchase of the three companies is expected to bolster Kerry’s flavoring, beverage and health product lines, adding about $300 million in annual revenue.
Commenting on the move, Stan McCarthy, Kerry Group chief executive, says the acquisitions will help Kerry significantly expand its taste and nutritional solutions portfolio, bringing a number of important innovative technology platforms to Kerry. "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," he says.