Balchem Corporation entered into a definitive agreement to acquire Performance Chemicals & Ingredients Company.
March 31/New Hampton, N.Y./Globe Newswire -- Balchem Corporation entered into a definitive agreement to acquire Performance Chemicals & Ingredients Company (d/b/a SensoryEffects), a privately held supplier of customized food and beverage ingredient systems, headquartered in St. Louis for a purchase price of $567 million in cash. SensoryEffects expects to have 2014 revenues of approximately $260 million and 2014 earnings before interest, tax, depreciation and amortization (EBITDA) of approximately $53 million. The acquisition purchase price reflects a multiple of 10.7 times estimated 2014 EBITDA, excluding any deal related costs and synergies. The transaction is expected to be immediately accretive to Balchem's earnings per share. The transaction consideration is subject to certain adjustments as provided in the definitive agreement and a substantial portion of the purchase price will be debt financed. The transaction is subject to certain regulatory approvals and customary closing conditions and is expected to close within the next 40 days.
SensoryEffects provides customized, technology-driven food and beverage solutions including ingredients, bases and finished food systems for food and beverage customers. SensoryEffects management team will continue to lead the food and beverage ingredient business, which will be merged with Balchem's Food, Pharma & Nutrition segment.