Piper Sandler Advises SK Capital on Sale of Niacet to Kerry

Rhea-AI Summary

Piper Sandler advised SK Capital Partners on the sale of Niacet Corporation to Kerry Group plc for $1.015 billion on a cash-free, debt-free basis. The acquisition will enhance Kerry’s food protection and preservation platform. Niacet is recognized for its leadership in Bakery and Pharma sectors, offering low-sodium preservation technologies for Meat and plant-based foods. The transaction is expected to close by Q3 2021, pending regulatory approvals. SK Capital's portfolio generates around $11 billion annually and employs over 16,000 people globally.

Positive

• The sale of Niacet Corporation for $1.015 billion strengthens Piper Sandler's position in the investment banking sector.
• Niacet's integration into Kerry Group will enhance capabilities in food preservation.
• The transaction involves a high-value acquisition, indicating strong investor confidence.

Negative

• Pending regulatory approvals could delay the closing of the transaction.

Piper Sandler & Co. chemicals & materials investment banking group (The Valence Group) announced today that it has advised SK Capital Partners on the sale of its portfolio company, Niacet Corporation, to Kerry Group plc for $1.015bn (€853m) on a cash-free, debt-free basis, subject to customary closing adjustments. Following the acquisition, Niacet will be integrated into Kerry’s global food protection and preservation platform.

The transaction is expected to close by the end of the third quarter of 2021, subject to customary closing conditions and regulatory approvals.

Niacet is a global market leader in technologies for preservation. It has clear leadership positions in Bakery and Pharma, and cost-effective low-sodium preservation systems for Meat and plant-based food across both conventional and clean label solutions. Niacet is differentiated by its proprietary drying and granulation process technologies in its key market categories of Bakery, Meat and Pharma. The business has customers in over 75 countries and key manufacturing sites in Niagara Falls (USA) and Tiel (Netherlands).

SK Capital is a private investment firm with a disciplined focus on the specialty materials, chemicals and pharmaceuticals sectors. SK Capital's portfolio of businesses generates revenues of approximately $11 billion annually, employs more than 16,000 people globally and operates 150 plants in 28 countries.

ABOUT PIPER SANDLER

Piper Sandler Companies (NYSE: PIPR) is a leading investment bank driven to help clients Realize the Power of Partnership®. Securities brokerage and investment banking services are offered in the U.S. through Piper Sandler & Co., member SIPC and NYSE; in the U.K. through Piper Sandler Ltd., authorized and regulated by the U.K. Financial Conduct Authority; and in Hong Kong through Piper Sandler Hong Kong Ltd., authorized and regulated by the Securities and Futures Commission. Private equity strategies and fixed income advisory services are offered through separately registered advisory affiliates.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20210621005721/en/

FAQ

What is the value of the Niacet Corporation sale by SK Capital?

The sale of Niacet Corporation to Kerry Group was valued at $1.015 billion.

When is the Niacet Corporation sale expected to close?

The transaction is expected to close by the end of the third quarter of 2021.

What sectors does Niacet Corporation operate in?

Niacet Corporation operates in the Bakery and Pharma sectors, specializing in food preservation technologies.

Who advised on the sale of Niacet Corporation?

Piper Sandler advised SK Capital Partners on the sale of Niacet Corporation.

What impact does the Niacet acquisition have on Kerry Group?

The acquisition enhances Kerry Group's global food protection and preservation platform.