Kerry plc has announced a deal to buy preservatives maker Hare Topco, trading as Niacet, for €853m as it moves to buy again in the taste, nutrition and ingredients business.

Niacet is a market leader in technologies for preservation and operates in the bakery and pharma sectors.

It’s preservation systems are also used in the meat and plant-based food sectors.

This move comes hot on the heels of the sale of the meats and ready meals business for €819m announced last Thursday evening to US company Pilgrims Pride.

Kerry said the deal, agreed with an affiliate of funds advised by SK Capital Partners and other shareholders, is on a cash-free, debt-free basis and is still subject to customary closing adjustments.

Revenue

For the year ended December 2021, Niacet is expected to have pro forma annualised revenue of about $220m and EBITDA of about $66m.

Following the deal, Kerry said that Niacet will be integrated into its global food protection and preservation platform.

Kerry said it will be funded through a combination of existing liquidity and a dedicated bridge facility.

The deal comes at a time of growing demand for longer-lasting food, as consumers become more aware of the environmental impact of waste, Kerry Group said.

Kerry Group CEO Edmond Scanlon said the acquisition of Niacet's complementary product portfolio enhances Kerry's leadership position in the fast-growing food protection and preservation market and significantly advances its sustainable nutrition ambition.

"Niacet is a business with market-leading positions, differentiated technologies and a strong and highly experienced management team," he said.

"We are pleased to welcome the Niacet team to Kerry and we are excited at the potential combination of our two businesses offers to outperform in this important and attractive market," the CEO added.

The move by Kerry fits with any of the discussions in the annual report and media briefings.

Following the ready meals sale last week there was a short term bounce in share price but trading on Friday finished more or less where it opened at €106/share.

This morning there has been another bounce in share price and latest trading sees Kerry plc shares trading at €109.50/share.