Category: Archive

Kerry Group buys two U.S. companies

February 17, 2011

By Staff Reporter

Kerry Group is a massive food ingredients company that currently racks up sales of over $5bn per year. It supplies ingredients and flavors, and is also deeply involved in food processing and bio-science. It announced last week that it had bought Custom Industries and Nuvex Ingredients for a total of $83m.
The deal brings to an end 72 years of independent ownership of Custom Industries. The company, which has its headquarters in St Genevieve, MO, manufactures specialty food ingredients. These are used primarily in cereals, snacks and baked products. Custom Industries was founded in St Louis, MO and also has a facility north of the border, in Toronto.
Nuvex Ingredients is based in Blue Earth, MN. Founded in 1987, it has come to specialize in low carb food ingredients. It also manufactures ingredients that it customizes to fit its clients’ needs. It is particularly strong in the cereal and energy bar sector.
The most recent results show that Nuvex and Custom Industries together have revenues of $83.7m, almost exactly the same as the sum Kerry Group paid to acquire them:
Kerry Group CEO Hugh Friel talked up the deal:
“The acquisition of Custom Industries and Nuvex Ingredients is consistent with our strategy of investing in and expanding the Group’s technical capabilities in nutritional and wellness food categories,” he said.
“Both acquisitions complement our existing facilities in the U.S. and Canada, adding new proprietary technologies and valuable production capacity to meet Kerry’s growth plans,” Friel added.
Kerry Group recently reported interim results for 2005. They showed solid growth. After-tax profit grew 16 percent to

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