Highlander Partners divests food solutions firm SensoryEffects for $567m

US-based investment firm Highlander Partners has divested its portfolio company SensoryEffects to Balchem for a purchase price of $567m.

SensoryEffects is a food and beverage company that develops complete systems, including flavourings and ingredients, to finished products.

Its business units include SensoryEffects Powder Systems in Defiance (Ohio), Reading (Pennsylvania), Marshfield (Wisconsin) and Sleepy Eye (Minnesota); SensoryEffects Flavor Systems in Bridgeton (Missouri); and SensoryEffects Cereal Systems in Lincoln (Nebraska).

The company’s six manufacturing sites are expected to generate revenues and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $260m and $53m respectively, in 2014.

SensoryEffects’ first acquisition was Diehl in 2006, a 125 year old family-owned business in Defiance, Ohio, with revenues of around $15m.

Other acquisitions include family-owned businesses and corporate carve-outs, auction processes, privately negotiated deals and one bankruptcy process, as well as manufacturing sites, product lines, technologies and equipment.

Highlander Partners president and SensoryEffects former board member Michael Nicolais said the firm is proud of its association with everyone at SensoryEffects.

"We truly believe that Balchem has acquired an exceptional company that is well positioned for future growth," Nicolais added.

SensoryEffects, with its three business units, supplies customised food and beverage ingredients and products to companies around the world.