Chemicals and ingredients distributor Brenntag is poised to expand its position in the North American food ingredients distribution market with the acquisition of Storm Chaser Holding Corp., known as JM Swank, a US-based food ingredients distribution firm, a company release announced Wednesday. The enterprise value of the transaction is $304 million.
“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 $1 billion dollars in revenue,” said Christian Kohlpaintner, the chief executive officer of Brenntag SE, in a statement. “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.”
JM Swank’s portfolio includes spices, dairy, grain, sweeteners, fats and oils, texturants, flavors and colors, starches, cocoa, and inclusions.
“The combination of Brenntag and JM Swank is an exciting opportunity to reshape the industry in a manner that is great for our collective customers, suppliers, and employees. 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,” JM Swank’s CEO Randy Cimorelli said in the release.
Brenntag expects the deal to close by the end of Q3 2021.