SK Capital signs deal to sell Niacet for $ 1,015 million
NEW YORK–(COMMERCIAL THREAD) – A subsidiary of funds advised by SK Capital Partners, LP (“SK Capital”) today announced that it has entered into an agreement to sell Niacet Corp. (“Niacet”) to Kerry Group plc, the global taste and nutrition company, for $ 1,015m (€ 853m ¹) on a cashless, debt-free basis, subject to customary closing adjustments.
Following the acquisition, Niacet will become part of Kerry’s global food preservation and preservation platform.
Jack Norris, Managing Director of SK Capital, said: “SK Capital is privileged to have partnered with Kelly Brannen and the entire Niacet team. We are proud and grateful for Niacet’s accomplishments over the past four years building on the strong foundation the Brannen family has built over many decades. We believe Niacet is well positioned to continue this growth and prosper under Kerry 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 at Niacet, which dates back to the purchase of Niacet by my family in 1978. This transaction confirms the reputation we have developed as a trusted industry. leader with long experience in manufacturing the highest quality products on the market. Our constant focus on innovation has been the key to the development and success of our new Clean Label products. I would like to thank our employees for their dedication and commitment and SK Capital for its support throughout its ownership period. In partnership, we have significantly strengthened and developed the business, while establishing the next phase of growth for Niacet. We see the sale to Kerry as a perfect fit. This will allow Niacet to grow at a much faster rate and sell into new markets around the world. We are very happy to be part of the Kerry family.
The transaction is expected to close by the end of the third quarter of 2021, subject to customary closing conditions and regulatory approvals. Credit Suisse and The Valence Group of Piper Sandler acted as financial advisers to Niacet and Latham & Watkins LLP acted as legal advisers to SK Capital and Niacet.
Niacet is a world market leader in preservation technologies. It has clear leadership positions in bakery and pharmaceuticals, and cost-effective low sodium preservation systems for meat and plant-based foods in conventional and clean label solutions. Niacet stands out with its exclusive drying and granulation process technologies in its main market categories of bakery, meat and pharmaceuticals. The company has customers in more than 75 countries and key manufacturing sites in Niagara Falls (United States) and Tiel (The Netherlands).
About SK Capital
SK Capital is a private investment firm specializing in the specialty materials, chemicals and pharmaceuticals sectors. The company seeks to build strong, growing businesses that create substantial long-term value. SK Capital aims to use its industry, operations and investment experience to identify opportunities to transform businesses into better performing organizations with strategic positioning, improved growth and profitability as well as operational risk. weaker. SK Capital’s business portfolio generates approximately $ 11 billion annually, employs more than 16,000 people worldwide and operates 150 factories in 28 countries. For more information visit www.skcapitalpartners.com.
¹ The cash consideration of 853 million euros is based on a current exchange rate of $ 1.19: € 1