Mr Denis Brosnan and Mr Hugh Friel have never been afraid to take on a load of debt when it comes to funding acquisitions. And no wonder. Given the level at which Kerry churns out free cash, the group has shown that it is capable to pay off even large acquisitions like DCA and Dalgety within three-year periods and even now, just a year after taking almost a net £300 million for Dalgety, Kerry will soon be in a position to look once again at very large acquisitions.

Kerry's net debt at the end of 1998 was £445 million (€565 million) - up from £281 million (€357 million) at the end of 1997, but the end-1998 figure came in a full €40 million (£31.5 million) below market expectations, as Kerry churned out net free cash of over £100 million. To put its cash generating potential in context If Kerry did not make an acquisition for the next three years it would wipe out its entire debt.

Kerry is an acquisitive group and was willing in the case of the DCA acquisition in 1995 - to allow its interest cover - the key measurement of a company's ability to repay debt - to fall to just 2.8 times.

A Kerry spokesman said that the group remains focused on expanding its consumer foods business through acquisition. Most analysts believe that food ingredients will be the sector where the big deals will be done. By this time next year, it is conceivable that Kerry could look at a deal well in excess of £500 million.