Brenntag to acquire food ingredients distributor JM Swank for $304m

Brenntag has signed a definitive agreement to acquire food ingredients distributor Storm Chaser Holding (JM Swank) from Platinum Equity for $304m to expand its position in the North American nutrition industry.

US-based JM Swank offers a diverse range of food ingredients that include dairy, grain, sweeteners, spices, fats and oils, flavours and colours through a broad supplier base.

The company reported sales of  $500m last year and is claimed to be the only national food ingredient distributor with a fleet delivering across the country.

In 2016, Platinum Equity acquired JM Swank from ConAgra Foods.

Brenntag stated that JM Swank’s portfolio complements its existing portfolio in the nutrition industry.

Brenntag CEO Christian Kohlpaintner said: “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 $1bn 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.”

Subject to certain contractual conditions and regulatory approvals, the transaction is expected to be concluded in the third quarter of this year.

For the deal, Harris Williams and Wells Fargo are acting as financial advisers to Platinum Equity while Morgan Lewis is serving as legal counsel to Platinum Equity.

Towards the start of this year, Brenntag agreed to acquire a stake in speciality ingredients distributor Zhongbai Xingye.