Kerry Group PLC Kerry Agrees sale of Foods Meats & Meals business (3152C)
June 18 2021 - 1:00AM
UK Regulatory
TIDMKYGA
RNS Number : 3152C
Kerry Group PLC
18 June 2021
Date: 17 June 2021
LEI: 635400TLVVBNXLFHWC59
KERRY GROUP
Kerry reaches agreement for the sale of its Consumer Foods'
Meats and Meals business to Pilgrim's Pride Corporation for
EUR819m.
Kerry Group plc today announces that it has reached agreement to
sell its Consumer Foods' Meats and Meals business in the UK and
Ireland to Pilgrim's Pride Corporation for a cash consideration of
EUR819m (GBP704m(1)) subject to routine closing adjustments. The
Meats and Meals business is a best-in-class provider of convenience
food solutions, with leading brands and longstanding relationships
with major retailers. The financial results for the year ended 31
December 2020 attributable to the business were revenue of EUR828m,
EBITDA of EUR86m, profit before tax of EUR63m, and gross assets of
EUR521m (2) .
The Meats business is a leading manufacturer of branded and
private label meats, meat snacks, food-to-go and meat-free products
in the UK and Ireland. Its brands include Richmond, Denny, Galtee,
Fridge Raiders and Rollover. The Meals business primarily serves
the UK market and specialises in authentic ethnic chilled and
frozen ready meals, multi-cuisine ready to cook ranges, and home
delivery meals under the Oakhouse brand.
Edmond Scanlon, CEO of Kerry, commented "Kerry's strategy for
the past 30 years has been to continuously evolve our portfolio, as
we progressed on our journey to becoming a market-leading Taste
& Nutrition company. This transaction further enhances Kerry's
focus as a leading business to business ingredient solutions
provider for the food, beverage and pharmaceutical markets.
Pilgrim's is a global provider of high-quality food products and I
am convinced they will make an excellent future owner of the Meats
and Meals business. I wish to thank the 4,500 employees of the
business for their contribution to Kerry over many years."
Fabio Sandri, CEO of Pilgrim's, commented "We are pleased to
have the opportunity to position Pilgrim's as a leading prepared
foods and branded products player through this acquisition. We look
forward to welcoming Kerry Consumer Foods' Meats and Meals
business' talented management team and other team members, led by
Nick Robinson, to the Pilgrim's family, and we look forward to
working together to drive growth and deliver value for all of our
stakeholders."
Nick Robinson, CEO of Kerry Consumer Foods, added "Our companies
share a rich heritage in food production with aligned values that
put people and customers at the heart of all we do. We look forward
to working with our new colleagues to build upon the fantastic
progress of these businesses and realise our combined growth
opportunities as we enter an exciting new phase."
The proceeds from the sale will be used for general corporate
purposes and the continued strategic development of the Taste &
Nutrition business. The transaction is expected to close in the
final quarter subject to customary closing conditions and
regulatory approvals. Following today's announcement, we will
separate and realign the remaining dairy-related activities within
the Consumer Foods Business. The strategic review of the dairy
business has been completed and there will be no disposal of the
dairy business at this time.
About Kerry Group
Kerry is the world's leading taste and nutrition partner for the
food, beverage and pharmaceutical industries. We innovate with our
customers to create great tasting products, with improved nutrition
and functionality, while ensuring better impact for the planet. Our
leading consumer insights, global RD&A team of 1,000+ food
scientists and local manufacturing footprint in 31 countries enable
us to co-create with our customers across over 150 countries. At
Kerry, we are driven to be our customers' most valued partner,
creating a world of sustainable nutrition, and will reach over 2
billion consumers with sustainable nutrition solutions by 2030. For
more information, vi sit www.kerrygroup. com.
About Pilgrim's
As a global food company with more than 58,000 team members,
Pilgrim's processes, prepares, packages and delivers fresh, frozen
and value-added food products for customers in more than 100
countries. For more information, please visit www.pilgrims.com.
Note: The sale constitutes a Class 2 transaction for the
purposes of the Euronext Dublin Listing Rules and the UK Financial
Conduct Authority's Listing Rules.
(1) GBP704m comprises an enterprise value of GBP680m and working
capital and net debt adjustments of approximately GBP24m. The cash
consideration of EUR819m is based on the prevailing exchange rate
of GBP0.86: EUR1 on 17 June 2021.
(2) Represents gross assets the subject of the transaction of
EUR185m plus attributable goodwill and intangibles of EUR336m.
CONTACT INFORMATION
=============================================
Investor Relations
Marguerite Larkin , Chief Financial
Officer
+353 66 7182292 | investorrelations@kerry.ie
William Lynch , Head of Investor
Relations
+353 66 7182292 | investorrelations@kerry.ie
Media
Catherine Keogh , Chief Corporate
Affairs & Brand Officer
+353 45 930188 | corpaffairs@kerry.com
Website
www.kerrygroup.com
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