Balchem Corners American Choline Market 31103

Balchem Corners American Choline Market

SLATE HILL, N.Y.--Balchem Corp. (www.balchem.com),based here, announced May 22 that its wholly owned subsidiary, BCP Ingredients,is acquiring the choline portion of Highland, Ill.-based DCV Inc. (www.dcvinc.com)and its affiliate, Wilmington, Del.-based DuCoa L.P. (www.ducoa.com).These assets include choline for animal feed and human consumption, as well asDuCoa's manufacturing facility in Verona, Mo. (DCV had produced choline forhuman consumption, while DuCoa had produced it for animal premixes.) Accordingto DCV, the companies together represent one of the largest choline producers inthe world, and DCV had been the only company in North America that had providedhuman-grade choline--a title that now belongs to Balchem.

The price for this acquisition is set for $14.98 million, which is subject tocertain adjustments. In addition, there is a possibility for contingent paymentsup to a maximum of $3 million depending on gross margins achieved on certainproduct lines over a three-year period.

Balchem reported sales of $33 million for 2000, $13 million of which includedits human, animal and industrial encapsulated ingredient businesses. DCV/DuCoais estimated to average $17 million in sales for their choline ingredients.Choline is one of many ingredients DuCoa and DCV had produced, and they stillmanufacture ingredients that include specialized proteins and complex minerals.