Balchem expands specialized ingredients empire with $567m deal to acquire SensoryEffects

By Elaine WATSON

- Last updated on GMT

$567m mega-deal will create 'one of the most comprehensive food ingredient solution companies globally', says Balchem
$567m mega-deal will create 'one of the most comprehensive food ingredient solution companies globally', says Balchem

Related tags: Chemistry

Microencapsulation expert Balchem Corporation has unveiled plans to acquire spray-dried ingredients specialist SensoryEffects (Performance Chemicals & Ingredients Company) in a $567m mega-deal it claims will create “one of the most comprehensive food ingredient solution companies globally”.

New York-based Balchem has three business units: ARC Specialty Products (specialty-packaged chemicals for healthcare); Food, Pharma & Nutrition (proprietary microencapsulation solutions for food, pharma, nutrition); and Animal Nutrition & Health. It has more than 400 staff and operates production facilities in New York, South Carolina, Missouri, Utah, Louisiana, Virginia and Italy.

St-Louis-based SensoryEffects​ also has three business units (powder systems in Defiance, OH; flavor systems in Bridgeton, MO; and cereal systems in Lincoln, NE), and expects to generate EBITDA of $53m on revenues of $260m in 2014.

Founded by Charles A. Nicolais and backed by Highlander Partners, L.P., SensoryEffects has grown rapidly in recently years via a series of strategic acquisitions and now has 400+ employees, six manufacturing facilities and a global customer base.  

Following the deal - which is expected to close in mid-May - the SensoryEffects management team will continue to lead the food and beverage ingredient business, which will be merged with Balchem’s Food, Pharma & Nutrition segment, said Balchem president and CEO Dino A. Rossi.

“The united experience and technical problem-solving capabilities will ultimately make our company one of the most comprehensive food ingredient solution companies globally.”

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