Kerry, the Ireland-based food group, has announced its agreement, subject to regulatory approval, to acquire Breeo Foods, a subsidiary of Irish based Reox Holdings.
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The deal, which has been in the pipeline since November 2007 when reports of the proposed sale first began, is expected to be worth EUR165m (US$257m).
Only last month, plans to acquire Breeo Foods hit a stumbling block over price. A spokesman for Reox Holdings said the company would not agree to a sale unless there was “compelling value benefit to shareholders”. Talks between the two companies resumed weeks later.
The proposed acquisition will include a portfolio of leading dairy and meat brands, which are household names in Ireland, including Dairygold, Galtee, Shaws, Roscrea, Mitchelstown, Calvita and Sno. It will also include Breeo Foods’ chilled foods distribution service.
Breeo Foods had revenue of EUR188.5m as per the last reported accounts and gross assets before liabilities of EUR58.5m.
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By GlobalDataThe impact of the acquisition on Kerry is subject to the timing of the completion of the transaction and is not expected to have a material impact on group earnings per share in the current year.
