Brenntag, a global chemicals and ingredients distributor, has announced the acquisition of the US-located Storm Chaser Holding Corporation (JM Swank) from Platinum Equity. The company is a distributor of food ingredients with reported sales of approximately $500m in 2020. With an enterprise value of $304m, the acquisition is aimed at expanding Brenntag’s position in the North American Nutrition industry.
The acquired company offers a diversified product portfolio of food ingredients such as spices, dairy, grain, sweeteners, fats & oils, texturants, flavours & colours, starches, cocoa, and inclusions.
Christian Kohlpaintner, CEO of Brenntag SE: “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 one billion US dollars 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.”
Randy Cimorelli, CEO of JM Swank: “The combination of Brenntag and JM Swank is an exciting opportunity to reshape the industry in a manner that is great for our collective customers, suppliers and employees. The combined scale and resources will provide a bigger and even better platform to serve our customers and lead the market in food ingredient distribution. Truly a special business combination.”
Henri Nejade, Member of the Management Board of Brenntag SE and COO Brenntag Specialties: “JM Swank has significant potential for continued future growth. The company provides Brenntag Specialties with an extended platform for strategic growth and strengthens our footprint in North America and the Americas as a region. With this acquisition we expand our portfolio, leverage logistics capabilities, and offer our customers an even more comprehensive range of services and products within the industry.”
Closing of the acquisition is expected to be completed within Q3 2021.
