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The Sleepy Eye Herald Dispatch - Sleepy Eye, MN
  • SensoryEffects agrees to be acquired by Balchem Corp.

  • Performance Chemicals and Ingredients Company SensoryEffects, the business who acquired Anderson Custom Processing effective March 14, has entered into a definitive agreement to sell all of its outstanding shares to Balchem Corporation, a human and animal health and wellness company.
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  • Performance Chemicals and Ingredients Company SensoryEffects, the business who acquired Anderson Custom Processing effective March 14, has entered into a definitive agreement to sell all of its outstanding shares to Balchem Corporation, a human and animal health and wellness company.
     
    The transaction is subject to certain regulatory approvals and customary closing conditions. The purchase price is $567 million and is expected to close within the next 40 days. The acquisition purchase price reflects a multiple of 10.7 times estimated 2014 EBITDA, excluding any deal related costs and synergies.
     
    According to Charles A. Nicolais, Chairman and President of CEO of SensoryEffects this merger will not effect the purchase of the Anderson facility in any way.
     
    “We are operating the business as is and the merger will result in more growth and more business for the company,” he added.
     
    SensoryEffects’ management team will continue to lead the food and beverage business and Balchem’s Food, Pharma and Nutrition business unit will be merged with SensoryEffects, creating the largest business segment in Balchem with sales of over $300 million.
     
    Nicolais said, “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 encapsulation and functional choline ingredients. Balchem is synonymous with the best in animal and human nutrition, and together, we look forward to delivering new and innovative ingredient solutions to our customers in the food and beverage industry.”
     
    The prospects of a combined Balchem and SensoryEffects will canvass an even broader range of food customers.

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