Irish food ingredients company Kerry Group has acquired three US-based companies - Red Arrow Products, Island Oasis and Biothera Inc’s Wellmune for a total of $735m.
Each of the acquired companies holds significant international reach that will help Kerry Group in its growth strategy.
The Tralee-based company will finance the acquisition through its existing credit lines, reported Irish Examiner.
Headquartered in Wisconsin, Red Arrow is a supplier of natural smoke flavours and savoury grill flavours to several food companies. It operates manufacturing facilities at Manitowoc in Wisconsin and Rhinelander in Wisconsin and has application and development centres in Germany and Sweden.
Following regulatory approvals, the acquisition is slated to be completed by early December.
Island Oasis offers cocktail mixes and personalized beverage solutions for restaurant, and hospitality segments in the US. Its offers frozen and shelf-stable fruit purées, coffee blends, and nutrition beverage systems. It runs manufacturing facilities in Byesville in Ohio and Buffalo in New York.
Wellmune, which was owned by pharmaceutical company Biothera, is a producer immune-strengthening ingredients for food and beverage industries. The acquisition will broaden Kerry's functional nutritional ingredients portfolio.
The companies had combined revenues of $301m in 2014, Irish Examiner reported.
Kerry Group chief executive Stan McCarthy said: "The acquisitions of Red Arrow, Island Oasis, and Wellmune, as well as significantly expanding our taste and nutritional solutions portfolio, bring 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."
