Kerry Group plc, a global food ingredients company, has agreed to purchase Niacet Corp. from An affiliate of funds advised by SK Capital Partners LP for $1.02 billion (€853 million) on a cash-free, debt-free basis, subject to customary closing adjustments.
Niacet is a global market provider in technologies for preservation of bakery and pharma products, as well as a meat and plant products, and proprietary dying and granulation process technologies. The business has customers in 75 countries and manufacturing sites in the US and the Netherlands. Niacet is expected to generate $262.4 million (€220 million) in revenue and $78.7 million (€66 million) in EBITDA during the year ended 31 December 2021, implying a transaction value of 15.4 times (x) annualized EBITDA.
Following the acquisition, Niacet’s technology will be integrated into Kerry’s global food protection and preservation platform.
Jack Norris, managing director at SK Capital, said, “SK Capital is privileged to have partnered with Kelly Brannen and the entire Niacet team. We are proud and appreciative of Niacet’s accomplishments over the last four years leveraging the strong foundation the Brannen family built over many decades. We believe Niacet is well-positioned to continue this growth and flourish under Kerry’s ownership. We wish Kerry and all the employees of Niacet every success.”
Kelly Brannen, CEO and significant minority owner of Niacet, commented, “We are proud of the rich heritage we have built in Niacet, dating back to when my family purchased Niacet in 1978. This transaction affirms the reputation we have developed as a trusted industry leader with a long-dated track record of making the highest quality products in the market.”
Niacet transaction is expected to close in the third-quarter of this year.
Credit Suisse and The Valence Group of Piper Sandler acted as financial advisors to Niacet and Latham & Watkins LLP acted as legal counsel to SK Capital and Niacet.