Ireland’s food giant, Kerry announced its biggest acquisition to date and the significant expansion of its U.S. footprint with the purchase of three U.S.-based food companies for $735 million.

 

The three companies which will enhance Kerry’s flavoring, beverage, and health lineup include Red Arrow Products, Island Oasis, and Wellmune.

 

Wisconsin-based Red Arrow Products produces meat flavorings, Massachusetts-based Island Oasis produces cocktail mixes and custom beverages for the hospitality sector, while Wellmune produces immune-friendly supplements from U.S. pharmaceuticals group, Biothera.

 

Kerry declined to disclose the amount paid for each separate business, but the total cost of the three deals will be funded through existing credit lines.

 

The group plans to integrate the three companies into its platform and market them globally. “The acquisitions of Red Arrow, Island Oasis and Wellmune, as well as significantly expanding our taste and nutritional solutions portfolio, bring a number of important innovative technology platforms to Kerry,” said Kerry chief executive, Stan McCarthy. “Complementing our existing taste and nutrition leadership positioning and growth strategies, the businesses being acquired present tremendous growth opportunities throughout Kerry’s global developed and developing markets.”

 

Kerry has grown to be counted as one of the world’s leading suppliers of food ingredients with annual sales of approximately €6 billion (US$6.8 billion), and the completion of these three deals will bring the group’s spending on acquisitions for the year to €900 million (US$1.02 billion).

 

Kerry has been rather acquisitive this year, buying the U.S. beverage group Insight Beverages, Costa Rica-based Baltimore Spice, and Turkey’s PST Pastcilik Gida, as well as the U.S.-based KFI Savory, the savory flavor business of Kraft Food Ingredients. The group also created a joint venture with the Dutch company, IOI Loders Croklaan for the marketing of the infant nutrition business, Betapol.

 

In addition, last year, Kerry launched the Irish infant formula brand, “Green Love+” in China, which is being marketed as a premium product, selling for €43 (US$48.70) per kilo – four times the price in Ireland.

 

In August of this year, Kerry posted revenues for the previous half-year of €3 billion (US$3.4 billion) – an increase of 2.7% over the same time period a year before. Earlier in October, it also opened a new €100 million (US$113.2 million) technology and innovation center in County Kildare, Ireland.