Kerry Group pays $62m for two US flavour and ingredient companies

Kerry Group has spent $62 million (€53 million) adding two new businesses to its US food ingredients and flavours operations. Dominic Coyle reports

It announced yesterday that it had bought Seattle, Washington-based Da Vinci Gourmet and Florida firm Crystals International.

A spokesman said the companies both had strong franchises across global markets. "While these companies are small relative to the size of Kerry Group, they are important strategic acquisitions," he said.

Da Vinci is a manufacturer of flavoured syrups, confectionery sauces and tea concentrates. Its acquisition is seen as complementing the Stearns and Lehman business bought by Kerry last year. While both serve the gourmet coffee business, "the difference is that Da Vinci is a leading branded supplier" sold through groceries and specialty stores as well as the coffee houses upon which Stearns and Lehman concentrates. Da Vinci supplies outlets in more than 40 countries.

Crystals is a specialist manufacturer of natural fruit and vegetable flavours serving a number of industries from the drinks sector to pharmaceuticals.

At a time when consumers are seen as more particular in their choice of natural flavourings, Kerry sees the purchase of Crystals as complementing its existing Mastertaste flavours operations. It also sees the possibility of synergies with SunPure, also based in Florida, which Kerry bought earlier this year.

Crystals International has markets in 28 countries.

The deals bring the value of Kerry's acquisitions to date this year to €177.5 million. The company says there are a number of other opportunities in its pipeline as it seeks to build its presence, especially in the flavours market.