Company Acquisitions Abound

ADM, Balchem and Huber announced acquisitions of Harvest Innovations, Albion and Martinswerk, respectively.

Archer Daniels Midland Co. (ADM) reached an agreement to purchase a controlling stake in Harvest Innovations, an industry leader in minimally processed, expeller-pressed soy proteins, oils and gluten-free ingredients.

“More and more consumers are looking for foods that are gluten-free, that aren’t genetically modified, and that are healthy and organic," said Vince Macciocchi, president of ADM’s WILD Flavors and specialty ingredients business unit. “Today’s addition perfectly complements our existing ingredient businesses and offers customers a full-service, one-stop shop for their ingredient needs."

Harvest Innovations is based in Indianola, Iowa, and has a second processing facility in Deshler, Ohio. The company uses expeller pressing to turn grains, legumes and oilseeds into minimally processed, non-genetically modified organism (GMO), organic, gluten-free ingredients. Products range from non-GMO soy chips, expeller-pressed soy flour and textured vegetable protein, to organic soy crisps, to gluten-free flours and pastas.

“We are not done growing," Macciocchi added. “We’re continuing to add to our capabilities, execute our plan to grow strategically, and deliver value for our customers and our shareholders."

ADM anticipates closing the transaction, which is subject to regulatory approval, in the coming months.

Balchem Corp. announced it acquired Albion International Inc., a privately held manufacturer of mineral amino acid chelates, specialized mineral salts and mineral complexes, headquartered in Clearfield, Utah, for a purchase price of $111.5 million in cash. Albion’s 2015 revenues were approximately $53.5 million. The acquisition purchase price reflects a multiple of approximately 10.7 times 2015 EBITDA, excluding any synergies. The transaction consideration is subject to certain adjustments as provided in the definitive agreement. The purchase price will be financed through the company’s existing revolving credit facility and cash on hand. The transaction is expected to be immediately accretive to Balchem’s earnings per share.

Albion has been a world leader and innovator in the manufacture of superior organic mineral compounds for 60 years. With more than 100 patents, the company leverages scientific expertise in the areas of both human and plant nutrition. Its products are renowned in the supplement industry for technologically advanced, unparalleled bioavailability.

With this acquisition, Balchem continues to expand its science-based human health and wellness solutions. Already a global leader in the essential nutrient, choline, Balchem will immediately expand the combined company's product offerings in the nutritional ingredient market by adding Albion’s premier branded innovative chelated minerals to its portfolio. The combined company will also benefit from a broader geographic footprint and an even stronger position as a technological leader in spray-drying and ingredient delivery solutions.

J.M. Huber Corp., through its Huber Engineered Materials (HEM) division, announced it acquired the Martinswerk business of Albemarle Corp. Now the Martinswerk portfolio is officially part of the Fire Retardant Additives (FRA) business unit of HEM.

Huber’s largest acquisition in more than a decade, the transaction included Martinswerk’s manufacturing facility in Bergheim, Germany, more than 470 employees and the following product lines:  

• Martinal® precipitated and ground alumina trihydrate

• Magnifin® premium precipitated magnesium hydroxide

• A variety of specialty chemical products, including Martifin® specialty hydrates for paper, Martoxid® aluminum oxide primarily for ceramics, Pergopak® flatting agents and carrier additives, and Compalox® granulated activated alumina.

“This strategic acquisition is well aligned with HEM’s FRA business unit—both from a product and geographic standpoint," explained Jerry Bertram, vice president and general manager of HEM’s fire retardant additive business. “It builds on our existing halogen-free fire-retardant offerings and expands the range of products we can provide to customers around the world."

To ensure a smooth integration, HEM is retaining the current management team at Martinswerk. The FRA business unit will be structured in a regional model with a general manager operating out of Europe.

The Martinswerk acquisition builds on Huber’s 34 year history of supplying fire retardants and smoke suppressants. It marks the latest in a series of investments in the FRA business by Huber, including the acquisition of the Kemgard® product line from Sherwin-Williams in 2010, and the purchase of the assets of the specialty hydrates business from Almatis in 2012. In 2015, Huber purchased the Safire® nitrogen and phosphorous flame retardant technology from Floridienne Group and Catena Additives.

“Bringing together our long-term experience in fire retardant additives with the product lines from Martinswerk broadens our portfolio of environmentally-friendly fire-retardant additives for use across multiple applications, including carpet backing, fiber reinforced plastics, roofing, silicone rubber and wire and cable," Bertram concluded.