Kerry Group to buy two US businesses for EUR325m

Kerry Group said on Friday that it has agreed to buy Ariake USA, the North American business of Ariake Japan Co, and Southeastern Mills North American coatings and seasonings business (SEM) for around €325m.

The food company said the acquisitions further enhance its foundational technology portfolio and strengthen its foodservice positioning in line with strategic growth priorities.

It said the acquisitions, both of which will be financed from existing lines of credit, have annualised pro-forma third-party revenues of approximately €125m.

Ariake USA produces natural clean label savoury taste solutions derived from poultry, pork and vegetables at its facility in Harrisonburg, Virginia. Ariake USA's highly specialised extraction technologies and development capabilities produce a suite of tailored solutions across a number of end use markets.

"This acquisition further enhances Kerry's extensive authentic taste and clean label portfolio, whilst also complementing the group's from-food-for-food heritage," it said.

Meanwhile, SEM manufactures coatings and seasonings at its strategically located manufacturing base in Rome, Georgia.

"This acquisition complements Kerry's authentic taste portfolio and further develops the group's industry leading offering into the meat end use market," the company said.