TRALEE, IRELAND — Kerry Group, one of the largest suppliers of food ingredients in the world, is ramping up its presence in the United States with a series of acquisitions. The company said it has agreed to spend approximately $735 million to buy Red Arrow Products, Island Oasis and Biothera Inc.’s Wellmune business. The acquisition of the three U.S.-based companies is expected to boost Kerry’s flavoring, beverage and health product lines, adding about $300 million in annual revenue.
Headquartered in Manitowoc, Wis., Red Arrow Products supplies natural smoke flavors and natural savory grill flavors for the meat, culinary and food industry markets. The company has manufacturing facilities in Manitowoc and Rhinelander, Wis., and is supported by application and development centers in Germany and Sweden.
Kerry said the acquisition of Red Arrow, combined with its recent acquisition of Wynnstarr Flavors and KFI Savory, will further strengthen its taste, technology and savory flavor industry leadership.
Based in Walpole, Mass., Island Oasis is a provider of natural premium cocktail mixes and customized beverage solutions serving “on-premise,” restaurant, leisure and hospitality segments of the U.S. market. The company’s portfolio of products includes frozen and shelf-stable fruit purees, coffee blends, performance nutrition beverage systems and customized “on-premise” beverage equipment for national and regional chains, quick-service restaurants and independent chains. Island Oasis has manufacturing facilities in Byesville, Ohio, and Buffalo, N.Y.
Kerry said the acquisition of Island Oasis complements its existing food service offerings — DaVinci Gourmet, Big Train, Oregon Chai, Golden Dipt and Gold Ladle — and that the acquisition broadens the group’s market reach and service in the fast growing segments of the food service channel.
The third company set to be acquired is the Wellmune business of St. Paul, Minn.-based Biothera Inc. The Wellmune business produces and markets the Wellmune branded natural food, beverage and supplement ingredient. Kerry said the addition of Wellmune will broaden its functional nutritional ingredients and wellness portfolio.“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 Stan McCarthy, chief executive officer of Kerry. “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.”