Kerry Group has continued its drive to build its core ingredients business with the $107.5m (£92.4m) acquisition of the Kraft Heinz powdered cheese business.
The deal for the B2B powdered cheese business – which is part of Kraft Heinz’s ingredients division – includes a factory in Minnesota in the US and 62 employees.
Kraft Heinz said the move was part of its ongoing programme of portfolio optimisation to reposition the $26bn turnover group towards fast-growing categories and geographies.
Kerry has also been undergoing a shift in focus in recent years as it turned away from consumer foods to concentrate on the fast-growing food and beverage ingredients markets, which has fatter margins than grocery supply.
The Irish group said the deal was expected to close in the coming months and would enhance its “scale, manufacturing capability and customer base in the important snacking category”.
Kerry agreed to sell its UK and Ireland meats and meals business to Moy Park owner Pilgrim’s Pride for €819m (£703m) in 2021 as part of its new strategy and also acquired preservatives maker Niacet Corp for €853m (£731.5m) to grow its expertise in working with producers of plant-based meat alternatives.
Last month, Kerry posted double-digit first half growth on higher sales volumes and prices as demand for ingredients to drive food and drink reformulation drove increased sales.
For the six months to 30 June Kerry Group reported a 13.3% jump in revenues to €4.1bn, while its core taste and nutrition business reported a sales increase of 27.5% to €3.5bn.
Shares in Kerry have fallen 1.9% to €102.90 so far today, while stock in Kraft Heinz fell 1.2% to $37.65 in the early trading in the US.
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