Kerry Group has tabled a €127m tender offer to acquire Biosearch Life, a Spanish public company that operates in the nutraceutical and functional food sector.
According to the details of the tender offer, Kerry Group has submitted a bid of €2.20 per share to acquire all of the shares in the Spanish business, which values the business at just under €127m.
Grupo Lactalis Iberia, which is the largest shareholder in Biosearch Life with a near 30% stake in the company, has indicated it will accept the offer, meaning the transaction is highly likely to go ahead.
According to Kerry Group’s announcement, Biosearch Life manufactures an extensive range of probiotics and is a leader in premium probiotics obtained from human breast milk (Hereditum® brand), scientifically backed innovative botanical extracts (Exxentia®) and natural omega-3 (Eupoly-3® brand).
Biosearch Life recorded sales of just under €21m in 2019 and made net profits of just over €770,000.
Operating profits in the business stood at €865,000 in 2019, giving the business an operating profit margin of 4.2%.
Shares in Kerry Group fell 2% in early trading on Monday morning.