Nkp Case Study

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In particular 1983 was an important year for Kerry when it was decided to establish U.S. and UK headquarters - opening offices in the Hancock Centre in Chicago and in London. The Erie Casein company's interest in NKMP was acquired and with its customer base in the U.S. Kerry embarked on the long road of carving a niche in the specialist food ingredient sector. Long before then management had come to understand that Kerry's milk protein was being used in the most sophisticated food products and that far greater value and profit was being generated in researching and producing such ingredient products, as distinct from supplying the milk protein from Ireland.
Accordingly Kerry advanced its diversification program and established a foothold in
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This move, which was entirely sympathetic to the Group's ambitious five year plan 1986 - 1990, was viewed as novel and innovative and had not been embarked upon before within the Co-operative sector in Ireland or elsewhere.
Essentially it involved the formation of a Public Limited Company (Kerry Group plc) by acquiring the undertaking, property and assets of the Co-op and as a consideration 90 million ordinary shares in Kerry Group plc were issued to the Co-op. Then in October 1986 a public offering of shares in Kerry Group plc was made at €0.66 (IR 52 pence) per share and the shares were listed on the Dublin stock exchange.
Subsequent to the successful launch and establishment of Kerry Group plc in 1986, higher growth targets were agreed which, with the requisite capital available, were achieved predominantly by acquisition at home and overseas. Kerry opened its first overseas food ingredients manufacturing plant in Jackson, Wisconsin in 1987 and the following year made its significant acquisition of Beatreme Food Ingredients, a division of the Beatrice Corporation. Beatreme, the premier specialty food ingredient supplier in the U.S. market was acquired by Kerry for
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market Kerry further consolidated its position in 1991 through the acquisition of Dairyland Products Inc. which was in Minnesota. Kerry acquired two businesses in the year of 1993 in Canada - Malcolm Foods in St. George, Ontario and Research Foods based in Toronto. In 1994 Kerry took over a processing facility in Irapuato (Mexico) and also invested US$30m in establishing a major ingredients manufacturing facility to supply Mexican and Central American markets.
In Europe, Kerry initially developed its food ingredients business in the confectionery dairy, convenience food sector from the Listowel plant in Ireland and the Wadersloh in Germany. Later, with taking over Eastleigh Flavours followed by the acquiring the Tingles Ltd. in 1993, Kerry was set to become leading supplier to the UK and mainland European snack food and food processing industries.
In November 1994 Kerry announced a major expansion of its international food ingredients business through the US $402 million acquisition of DCA Food Industries and Margetts Foods collectively "DCA") from Allied Domecq plc.
After positioning itself strongly in European and North American markets, Kerry now focused on expanding its presence in the growth markets of South America and Asia, while continuing to grow its leadership positions in its existing
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