Modest rise in Kerry Group shares after Niacet acquisition

€853 million acquisition of global leader in manufacturing preservation technologies only resulted in a 2 per cent lift in Kerry Group shares during morning trading

Edmond Scanlon, the Kerry Group chief executive, said the acquisition of Niacet offers the potential for his company to outperform the food preservation market

Shares in Kerry Group showed only a modest lift of 2 per cent in morning trading after the company announced the €853 million acquisition of Niacet, a US-based manufacturer of preservation technologies.

Kerry Group paid a multiple of 15.4 times earnings for the US company, which is expected to generate sales of $220 million this year and earnings (Ebitda) of $66 million. The business is extremely profitable with earnings margins in the region of 30 ...