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Kerry Group has agreed a €137m deal to by German biotechnology company c-Lecta as it builds its presence in the food and nutrition technology space. 

Kerry will acquire 92% of the Leipzig-based firm for €137m, with management retaining the balance. 

c-LEcta specialising in precision fermentation and bio-processing for the creation of high-value targeted enzymes and ingredients. 

It employs over 100 people and has “established itself as a leading innovator in disruptive new sciences for the pharmaceutical market, with a strong pipeline of functional bioactives across food, beverage and other consumer markets”. 

Kerry said the deal will accelerate its innovation capabilities in enzyme engineering, fermentation and bio-process development.  

This acquisition will further support Kerry’s commitment to invest in the development of innovative sustainable technologies, which will be at the heart of future sustainable food and health systems. 

The news follows Kerry’s buying Mexican biotech firm Enmex for €62m on 14 December. 

Enmex is a another enzyme manufacturer based in Mexico, supplying multiple bio-process solutions for food, beverage and animal nutrition markets. The deal will extend Kerry’s fermentation and enzyme manufacturing capabilities into Latin America. 

Kerry Group agreed to sell its UK and Ireland meats and meals business to Moy Park owner Pilgrim’s Pride for €819m (£703m) in June 2021 to refocus the group on its food ingredients business. 

The sell-off of its consumer division Kerry’s was designed to focus Kerry on becoming a business to business ingredient solutions provider for the food, beverage and pharmaceutical markets 

Morning update 

On the markets this morning, the FTSE 100 has rebounded 0.8% to 7,591.4pts after yesterday’s heavy falls. 

Kerry Group is amongst the early risers following its acquisition announcement, up 2.4% to €108.30. 

Other risers include Ocado, up 2.4% to 1,331, Coca-Cola HBC, up 2.5% to 2,466p and Nichols, up 2.9% to 1,491.5p. 

Fallers include THG, down 2.3% to 120.9p, Hilton Food Group, down 0.7% to 1,029.2p and Domino’s Pizza Group, down 0.5% to 382.4p. 

Yesterday in the City 

The FTSE 100 slumped 1.7% to 7,531.5pts yesterday as concerns over the Russia/Ukraine situation hit global markets. 

Heavy fallers included McBride, down 6.2% to 47.3p, PayPoint, down 6% to 628p, THG, down 5.1% to 123.8p, WH Smith, down 4.2% to 1,591.5p, Science in Sport, down 4.1% to 58.5p, Naked Wines, down 4% to 444p, SSP Group, down 3.9% to 285.5p and Coca-Cola HBC, down 3.9% to 2,405p. 

The day’s few risers included Nichols, up 2.8% to 1,450p, Hotel Chocolat, up 1.4% to 444p, British American Tobacco, up 1.2% to 3,409p, Ocado, up 0.5% to 1,300p and Glanbia, up 0.5% to €12.44.