NEW HAMPTON, N.Y.Balchem Corporation has inked a deal to acquire Performance Chemicals & Ingredients Co., dba SensoryEffects, for $567 million in cash, according to a definitive agreement signed by the companies on March 31.
St. Louis-based SensoryEffects is a supplier of customized food and beverage ingredients and products with three business units: SensoryEffects Powder Systems in Defiance, Ohio; SensoryEffects Flavor Systems in Bridgeton, Mo.; and SensoryEffects Cereal Systems in Lincoln, Neb.
SensoryEffects is a leader in powder, solid and liquid flavor systems, creamer and specialty emulsified powders, cereal-based products and other functional ingredient food and beverage delivery systems. SensoryEffects’ management team will continue to lead the food and beverage ingredient business, which will be merged with Balchem’s Food, Pharma & Nutrition segment, strengthening its market leadership position.
Balchem’s technologies apply across a broad spectrum of food, nutritional and pharmaceutical markets, and its proprietary portfolio brings solutions that differentiate products for commercial bakers, confectioners, flavor specialists, meat processors, nutraceutical and functional food producers, drug manufacturers and more. Balchem has been a pioneer in, and is one of the world's leading providers of novel microencapsulated lipid ingredient solutions. In addition, Balchem has been creating innovative products with human-grade choline for many years and is the world’s leading producer of this essential nutrient.
“We have found a unique complement for Balchem with SensoryEffects. Both of our companies have built stellar reputations for quality products that address the food and beverage industry’s most specialized needs. The prospects of a combined Balchem and SensoryEffects will canvass an even broader range of food customers. The united experience and technical problem solving capabilities will ultimately make our company one of the most comprehensive food ingredient solution companies globally," said Dino A. Rossi, chairman, president and CEO of Balchem.
Commenting on the deal, Charles A. Nicolais, chairman, president and CEO of SensoryEffects said: “SensoryEffects has grown into a leading food and beverage ingredient supplier by delivering customized solutions to our customers, employing innovative technologies, coupled with disciplined manufacturing, safety, and quality processes. We are excited to enter into this agreement with Balchem, who is an ideal partner for us, strengthening our position by merging our business with its encapsulated and functional choline ingredients. Balchem is synonymous with the best in human and animal nutrition, and together, we look forward to delivering new and innovative ingredient solutions to our customers in the food and beverage industry."