Kerry Group entered into an agreement to acquire Cargill Flavor Systems for $230 million, subject to closing adjustments.
Kerry Group, the Ireland-based global ingredients, flavors and consumer foods group, entered into an agreement to acquire Cargill Flavor Systems, Cincinnati, for $230 million, subject to closing adjustments.
This acquisition will strengthen Kerry’s capability to provide integrated customer solutions across all food and beverage end-use markets and extend the group’s market spread in emerging markets.
Cargill Flavor Systems maintains well-established international flavor technology development expertise serving a global customer base through provision of flavor ingredients and systems for beverage, dairy, sweet and savory applications. The business has long-standing relationships with leading global food and beverage manufacturers and employs 700 people through its integrated flavor development and application centers in France, the UK, South Africa, India, Malaysia, China, United States, Puerto Rico, Mexico and Brazil.
Cargill recently introduced Vitex AYS stabilizers, a customizable functional system that enables dairy food manufacturers to manage raw material costs in yogurt while still providing consumers with the same creamy products they expect. Vitex AYS features modified food starch and hydrocolloids to create a cost-effective alternative to gelatin without affecting the flavor or texture of yogurt.
Vitex AYS stabilizers belong to Cargill's Vitex blends family of functional systems that offer processing efficiencies and cost-optimization advantages in new or reformulated food and beverage products. Vitex blends are designed to provide improved texture and body, optimum mouthfeel, sheen, clean flavor delivery, longer shelf-life and increased product stability.
"We share our customers' focus on cost management and operational efficiencies and understand the challenges dairy producers face in creating profitable products,” says Eric Zorn, product manager, Cargill Texturizing Solutions.
The transaction, which is subject to regulatory approval, is expected to be completed by year-end.