Essen (Ruhr) / DE. (bag / eb) Germany’s Brenntag SE, the global market leader in chemical and ingredients distribution, announces the acquisition of the US-located Storm Chaser Holding Corporation (JM Swank) from Platinum Equity. The company is a leading distributor of food ingredients and reported sales of approximately USD 500 million in 2020. With an enterprise value of USD 304 million, this is a decisive step in expanding Brenntag’s position in the North American Nutrition industry and a key acquisition aligned with Brenntag’s M+A strategy.
Christian Kohlpaintner, Chief Executive Officer of Brenntag SE: «With JM Swank, we acquire a renowned leader in the North American market in the sector of food ingredients distribution. This strategic acquisition will double Brenntag’s size in the Nutrition business in the region and thus creates the leading food ingredients and food process chemicals distributor in North America with approximately one billion US Dollars in revenue. Nutrition is one of the defined focus industries in the Brenntag Specialties division. This acquisition is fully in line with our M+A strategy as it accomplishes key strategic objectives: acquiring companies generating a meaningful operating Ebitda contribution as well as targets accelerating growth of our Brenntag Specialties division.»
The acquired company offers a highly diversified product portfolio of food ingredients such as spices, dairy, grain, sweeteners, fats + oils, texturants, flavors + colors, starches, cocoa, and inclusions. JM Swank’s broad product line perfectly complements Brenntag’s existing portfolio in the Nutrition industry.
Henri Nejade, Member of the Management Board of Brenntag SE and Chief Operating Officer Brenntag Specialties: «JM Swank has significant potential for continued future growth. The company provides Brenntag Specialties with an extended platform for strategic growth and strengthens our footprint in North America and the Americas as a region. With this acquisition we expand our portfolio, leverage logistics capabilities, and offer our customers an even more comprehensive range of services and products within the industry.»
Randy Cimorelli, Chief Executive Officer of JM Swank: «Leveraging Platinum’s operational and financial toolbox has allowed us to take this next step into the future. The combined scale and resources will provide a bigger and even better platform to serve our customers and lead the market in food ingredient distribution. Truly a special business combination.»
Adam Cooper, Platinum Equity Managing Director: «JM Swank exemplifies how Platinum’s approach can create value throughout the entire lifecycle of an investment. Following the carve out from ConAgra, we executed a comprehensive transition and transformation program, providing the business with the tools needed to thrive as an independent company. We invested in JM Swank’s national distribution infrastructure, optimized its operations, installed an outstanding management team, and built a scalable platform that is now well positioned for a new period of growth in the years ahead.»
Closing of the acquisition is subject to certain contractual conditions and regulatory approvals and is expected to be completed within Q3-2021.