Specialty performance ingredients maker Balchem Corp (BCPC) Monday agreed to acquire Performance Chemicals & Ingredients Co (d/b/a SensoryEffects) for $567 million in cash. Balchem expects the deal to be immediately accretive to its earnings per share.
Performance Chemicals & Ingredients Co, based in St. Louis, Missouri, is a privately held supplier of customized food and beverage ingredient systems. The company expects to have 2014 revenues of about $260 million and 2014 EBITDA of nearly $53 million.
"SensoryEffects accelerates our strategic growth plans into health and wellness markets powerful combination," said Richard Bendure, Balchem's chief operating officer.
Balchem said the deal consideration is subject to certain adjustments and a substantial portion of the purchase price will be debt financed.
SensoryEffects provides customized, technology-driven food and beverage solutions for multinational and emerging high-growth customers. Its solutions enhance vital sensory properties.
SensoryEffects will be merged with Balchem's Food, Pharma & Nutrition segment.
Balchem stock closed Monday at $52.12, up $0.93 or 1.82%, on a volume of 303k shares on the Nasdaq.
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