Kerry acquires Biosearch Life for US$150M to expand functional foods and proactive health offerings

08 Jul 2021 --- Kerry Group is acquiring Biosearch Life for €126.9 million (US$150 million) to expand its portfolio of health ingredients, such as probiotics and omega 3s. The move will further boost Kerry’s capabilities within functional foods and proactive health ingredients. 

“Biosearch is a strong complement to our portfolio and brings leading clinical research capabilities and functional food technologies across multiple life stages and need states,” Edmond Scanlon, CEO of Kerry, tells NutritionInsight. 

“We share a commitment to advance the science behind healthier food and we look forward to expanding our capabilities and offering in this space.”

NutritionInsight also reached out to Biosearch Life, but the company declined to comment.

Expanding on health ingredients
The acquisition significantly expands Kerry’s ProActive Health portfolio of ingredients with new branded technologies, according to Scanlon.

For example, Hereditum brand is a range of premium probiotics, which are isolated from human breast milk and suitable for use in infant nutrition, functional foods and dietary supplements. 

“The Hereditum range consists of five probiotic strains, all of which are supported by clinical efficacy studies and are suitable for product lines with benefits aligned to digestive health, immunity, mastitis, colic and oral health,” he details.

In addition, the Eupoly-3 brand is a range of ultra-purified omega 3 fish oils with a clean taste profile specifically developed for applications including dairy, infant formulas, and functional foods and beverages.

Kerry is acquiring Biosearch Life to expand its portfolio of health ingredients, such as probiotics, botanicals and omega 3.“The Exxentia brand is another interesting range, with over 250 botanical extracts, including several branded extract ingredients, which deliver many health benefits, including for joint health, women’s health, and heart health.”

“As a next step, project teams are being formed to develop plans to welcome the Biosearch Life colleagues and integrate the technologies into our ProActive Health portfolio, thus enabling Kerry to better serve customers, creating a world of sustainable nutrition,” Scanlon notes.

Trending in functional foods
Digestive health, immune health and added protein are all areas of focus for people looking to take greater control over their health, supports Scanlon. 

“Functional ingredients in foods are a growing trend as consumers search for options outside of supplements. Our strategy involves the optimization of the nutritional composition of a product without compromising on the taste consumers expect and love.”

The functional foods trend is reflected by Innova Markets Insights’ “In Tune with Immune” trend. 

The pandemic has pushed consumers to prioritize their health in 2021, with three in five consumers globally indicating they are increasingly looking for food and beverage products to support their immune health.

Consumer awareness of the benefits of probiotics is still gaining traction, with its relationship to gut health and immunity increasingly being made clear. According to the market researcher, more than a third of F&B launches tracked with immune health claims are related to digestive or gut health.

“At Kerry, we can also optimize the nutritional profile by introducing positive nutrition to products including dairy and plant-based proteins. This is with our probiotic Ganeden BC30 and our immune-supporting ingredient Wellmune.”

As a next step, project teams are being formed to integrate the technologies into Kerry’s ProActive Health portfolio.“Meanwhile, our TasteSense technology delivers great taste while balancing nutrition. It offers a portfolio of solutions to deliver great taste in products that have been nutritionally optimized or adapted to meet evolving consumer needs.” 

Acquisition specifics
Biosearch is focused on providing innovative solutions for the pharmaceutical, nutraceutical and functional food sectors. 

The company provides an extensive range of probiotics and premium probiotics obtained from human breast milk, as well as scientifically backed innovative botanical extracts and natural omega 3.

In February, Kerry extended a public tender offer through its Spanish subsidiary Kerry Iberia Taste & Nutrition.

Following the expiration of the acceptance period on June 29, approximately 52,121,923 Biosearch shares were tendered into the offer, representing 90 percent of the share capital of the company. 

The result of the offer was approved by the Spanish National Securities Markets Commission on July 5, 2021 and the acquisition of the shares tendered will be settled today, July 8, 2021.

If all necessary conditions are met, Kerry will compulsorily acquire all the remaining shares of Biosearch, which have not yet been tendered. The compensation paid will be equal to the price of the tender offer, i.e., €2.20 (US$2.66) per share.

By Kristiana Lalou