Selling food ingredients
2 Mar 2004
The Kerry Group is to acquire the Quest Food Ingredients business from the ICI Group for $440m. The deal is expected to be completed in the second quarter of 2004.
Quest Food Ingredients is a developer of bio-ingredients and pharma-ingredients, serving pharmaceutical, culinary, snack, bakery, dairy and confectionery markets world-wide.
On a 2003 pro-forma basis, the business had annual revenues of $255m and earnings before interest, taxation, depreciation and amortisation (EBITDA) of $37m. The value of net assets being acquired, including a 50% investment in a joint venture manufacturing unit in Esterol, Malaysia, is $150m.
Quest Food Ingredients operates from nine major facilities located in Utrecht, Netherlands, Norwich NY, Rochester MN, Zwijndrecht, Netherlands, Esterol, Malaysia, Brantford, Canada, Cebu, Philippines, Cork, Ireland and Menstrie in the UK as well as two technology centres in Naarden, Netherlands and Chicago, IL.
In 2003, sales in European markets accounted for 40% of the company's sales, North American markets 38%, Asia Pacific markets 10% and the rest of the world 12%.
