With an enterprise value of $304 million, JM Swank is a food ingredients distributor based in Iowa, US.
The company – which reported sales of approximately $500 million in 2020 – offers a diverse range of food ingredients, including spices, grains, sweeteners, fats and oils, texturants, flavours and colours, starches, cocoa, inclusions and dairy ingredients.
According to Brenntag, JM Swank’s portfolio complements its own nutrition offerings, and the acquisition marks a ‘decisive step’ in expanding its position in the North American nutrition market.
Christian Kohlpaintner, CEO of Brenntag, 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 $1 billion 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.”
Platinum Equity acquired JM Swank from ConAgra Foods, now known as Conagra Brands, in 2016.
“JM Swank exemplifies how Platinum’s approach can create value throughout the entire lifecycle of an investment,” said Platinum Equity managing director, Adam Cooper.
“Following the carve out from ConAgra, we executed a comprehensive transition and transformation programme, providing the business with the tools needed to thrive as an independent company.”
The closing of the transaction is subject to contractual conditions and regulatory approvals, and is expected to be completed within the third quarter of this year.
Earlier this year, Brenntag announced its purchase of Chinese speciality ingredients distributor, Zhongbai Xingye Food Technology (Beijing) Co.