Kerry to acquire Biosearch Life to expand probiotics, botanicals and omega 3 reach

17 Feb 2021 --- Kerry Group has announced its intention of acquiring Spain-based Biosearch Life. The acquisition is set to be completed by means of a “friendly public tender offer” for the shares of Biosearch Life addressed to all of its shareholders.

“Our proposed acquisition of Biosearch Life will further enhance our leadership position in science backed probiotics and botanical extracts. It will also create opportunities for us to greatly expand the range of health benefits for which we offer ingredients including joint health, women’s health, heart health and others,” John Quilter, vice president and general manager, Kerry ProActive Health, tells NutritionInsight.

According to official documents lodged with the Spanish stock exchange, the offer is launched over a total of 57,699,522 shares at a price of €2.20 per share payable in cash. Consequently, the total consideration of the offer, in the event that it is accepted by all the shareholders to whom it is addressed, amounts to €126,93 million.

“In accordance with current regulations, the company will make a statement when legally required and once the tender prospectus is approved by the CNMV [Spanish regulator] and is public,” a Biosearch Life spokesperson tells NutritionInsight. “The company’s board of directors will issue its opinion through the report during the period of offer acceptance. Until then, the council is subject to the duty of passivity and is not responsible for conducting any analysis,” they add.

Speaking to NutritionInsight, Lactalis Iberia confirmed that it has reached an irrevocable commitment to sell its stake in Biosearch Life to Kerry.

“Lactalis intends to continue to collaborate with Biosearch Life as it has done to date, through research projects and the purchase of ingredients. The Lactalis Group maintains its strong commitment to the Spanish market through its milk and dairy products manufacturing activity in its 8 factories and its collaboration with more than 2,000 farmers,” the company notes.

Biosearch Life will make a statement when legally required once the tender prospectus is approved by the CNMV. Meanwhile, Biosearch Life will continue to operate its businesses in the best interest of its shareholders, taking into account the conditions derived from the offer process, the spokesperson notes.

Expanding Kerry’s reach
Based in Granada, Spain and employing over 150 employees, Biosearch Life is active in the nutraceutical and functional food sectors. 

The company has a wide range of probiotics and is a recognized supplier of premium probiotics obtained from human breast milk (Hereditum brand), scientifically backed innovative botanical extracts (Exxentia) and natural omega 3 (Eupoly-3 brand).

“At Kerry, we have a strategy to further grow our offering of science-backed branded health ingredients and bring even more health and wellness ingredients to consumers all over the world,” Quilter says.

“All over the world, we are seeing strong growth in consumers becoming more proactive in their approach to managing their health, and turning to functional food, beverages and supplements containing clinically supported functional ingredients. Consumers are more educated than ever before and are seeking out brands, whose health benefits are supported by quality science.”

The news for the acquisition comes at the heels of Kerry signing a licensing partnership with Japan-based Pharma Foods International (PFI) for the development, application and global sales of joint health ingredient technology.

Targeting F&B fortification, the PFI joint health technology complements Kerry’s portfolio of science-backed branded ingredients – including GanedenBC30, Wellmune and its most recent addition Bio-K Plus probiotics.

Meanwhile, Kerry Group recently posted its business performance for the year ended December 31, 2020, with a group revenue of €7.0 billion (US$8.5 billion). 

Since the onset of the COVID-19 pandemic, chilled meals were impacted by reduced consumer impulse purchases, while frozen meals benefited from increased retailer stocking in the fourth quarter. 

Edmond Scanlon, Kerry’s CEO, highlighted “notable distinctions” in business performance across various channels as a knock-on effect of COVID-19. 

As forecasted by Innova Market Insights, the pandemic has driven up omnichannel purchases and the demand for immunity-fortifying ingredients.

By Kristiana Lalou