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October 25, 2018

Kerry to buy two foodservice suppliers for €365m

Ireland-based consumer foods group Kerry has signed an agreement to acquire Fleischmann's Vinegar and Aatco Food Industries for a total consideration of €365m ($416.45m).

Ireland-based consumer foods group Kerry has signed an agreement to acquire Fleischmann’s Vinegar and Aatco Food Industries for a total consideration of €365m ($416.45m).

The transaction is expected to strengthen Kerry’s foodservice and developing markets, as well as expand its foundational technology portfolio. Kerry will finance the acquisitions from existing lines of credit.

The consumer group will acquire Fleischmann’s Vinegar from its US-based parent Green Plains for $350m in cash.

Fleischmann’s Vinegar offers speciality ingredients to end-use markets. It operates manufacturing facilities in Washington, New York, Maryland, Illinois, Missouri, Alabama and California, US.

“This transaction gives the company the ability to completely pay off our term loan B and invest in high-protein distillers grains process technology.”

Commenting on the deal, Green Plains’ president and CEO Todd Becker said: “The sale of Fleischmann’s Vinegar marks a major milestone of our portfolio optimisation plan, which creates significant value for our shareholders as we continue to prove the value of our asset base and position the company for the future.

“Once completed, this transaction, plus the proceeds from the sale of the three ethanol facilities announced earlier this month, gives the company the ability to completely pay off our term loan B, invest in high-protein distillers grains process technology and repurchase shares when our stock is undervalued.”

Expected to complete in Q4 2018, the transaction is currently subject to customary closing conditions and regulatory approvals.

Oman-based Aatco Food Industries offers culinary sauces to the foodservice channel. It has manufacturing facilities in Sohar, Oman and Jeddah in Saudi Arabia and Nashik in India.

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