Kerry to buy preservative maker Niacet for $1 billion

Kerry Group, an Irish food ingredients firm, has agreed to acquire the food preservative maker Niacet for about $1 billion from the private equity firm SK Capital Partners. Based in Niagara Falls, New York, Niacet calls itself North America’s largest producer of organic acid salts, including sodium acetate and calcium propionate, used in preservation and other food applications. It expects to have about $220 million in sales this year. SK acquired Niacet from the Brannen family in 2017. In a presentation for investors, Kerry executives say the global food preservation market is about $1.8 billion per year, split roughly evenly between “clean label” and conventional products. Kerry already offers clean label preservatives that are based on vinegar, fermentation, and plant extracts. Niacet’s calcium propionate, used in baked goods, and acetates, used in processed meats, are considered conventional preservatives, though the firm also offers vinegar-based products.