Irish convenience food and beverage investment company Kerga has acquired German drinks group Münsterland J Lülf.
Kerga is jointly owned by Irish investment companies BiaVest and Development Capital. It was established by the two groups for the sole purpose of acquiring and developing a pan-European food business.
It acquired Nomadic Dairy, which specialises in chilled snacks, from Donegal Investment Group in 2021 for an upfront consideration of €23 million.
Kerga generated revenue of €30 million in 2023, which was up from €27.7 million the previous year. It made a profit of €1.7 million in the same year, up from €1.1 million in 2022.
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Münsterland has annual revenues in excess of €25 million. Kerga expects combined revenues in excess of €60 million from 2026. It said Nomadic and Münsterland are on track to sell over 100 million units across Europe next year.
BiaVest is a dedicated food-focused private investment fund founded by Hilliard Lombard and David McKernan in 2021.
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Its current revenue under management exceeds €100 million, and it employs more than 450 employees across its European-based portfolio of companies.
Development Capital is a €75 million development and growth capital SME fund established in 2013 by Andrew Bourg and Sinead Heaney. It is backed by Irish and international investors and has completed 15 investments to date.
Kerga said the acquisition of Münsterland was part of its strategy to build a European portfolio of nourishing convenience food and beverage businesses. Münsterland was established in 1889 and started developing milk-mix drinks in the early 1950s.
It sells iced coffees, protein drinks, and natural energy teas produced in a variety of sustainable glass and aluminium formats to brands, including Jimmy’s Iced Coffee, in more than 20 countries.
Kerga said it sees “significant growth potential” with Münsterland across both existing and new customers and markets.
It said the acquisition complements its investment in Nomadic Foods and further strengthens its overall manufacturing and market access infrastructure, including for Nomadic’s convenience snacking portfolio.
Kerga said Nomadic, which is based in Killygordon, Co Donegal, is delivering “strong growth” in the British and Irish markets. Kerga’s growth strategy is supported by Bank of Ireland Corporate and Markets.
Kerga chief executive Alan Cunningham said the group has “a clear roadmap” for further acquisitions and is focused on building a portfolio of premium brands and manufacturing assets in high-growth categories.
Kerga chairman and BiaVest co-founder Hilliard Lombard said: “Our acquisition strategy targets businesses with proven revenues of €20 million-plus, strong track records, and clear scope for innovation and market expansion.”
