Hawkins completes acquisition of Stauber Performance Ingredients for $157m

Hawkins has finalised the acquisition of Stauber Performance Ingredients from ICV Partners II and its other shareholders in a cash for stock transaction worth $157m.

Hawkins chief executive officer Patrick H Hawkins said: "We are extremely pleased to be adding the Stauber business and its employees to the Hawkins’ organisation.

"As we stated before, this acquisition marks the largest in Hawkins’ history, and it is transformational for us.

"We previously stated our intent to expand our portfolio of value-added specialty products within new markets. This acquisition accelerates that strategy."

The Stauber business will be called Specialty Ingredients going forward.

Established in 1969, Stauber provides specialty products and ingredients to nutritional, food, pharmaceutical, cosmetic and pet care industries, and has around 160 employees, and facilities in California and New York.

It generated revenues of about $117m for the twelve months prior to 30 September, 2015.

The merged entities will now have approximately 630 employees and revenues of nearly $500m for the year ending 30 September, 2015.

In order to fund the acquisition, Hawkins has entered into a loan arrangement with the US Bank National Association and JP Morgan Chase Bank.

Greene Holcomb & Fisher served as the financial advisor to Hawkins, while Piper Jaffray & Co served as the financial advisor to ICV Partners II.

Headquartered in Roseville, Minnesota, Hawkins distributes, blends and manufactures bulk and specialty chemicals for its customers in a wide variety of industries and has 41 facilities in 19 US states.