LOS ANGELES, June 23, 2021 / PRNewswire / – Platinum Equity today announced the signing of a definitive agreement to sell food ingredient distributor JM Swank to Brenntag.
JM Swank, headquartered at North Liberty, Iowa, offers a very diverse product portfolio of food ingredients including spices, dairy, grains, sweeteners, fats and oils, texturizers, flavors and colors, starches, cocoa and inclusions through a large base of suppliers. The company achieved a turnover of approximately $ 500 million in 2020 and is the only national distributor of food ingredients with a fleet delivering nationwide.
Platinum Equity acquired JM Swank from ConAgra Foods in 2016.
“JM Swank illustrates how Platinum’s approach can create value throughout the lifecycle of an investment,” said the CEO of Platinum Equity. Adam cooper. “Following the separation from ConAgra, we executed a comprehensive transition and transformation program, providing the company with the tools to thrive as an independent business. We invested in JM Swank’s national distribution infrastructure, optimized its operations, installed an exceptional leadership team, and built a scalable platform that is now well positioned for a further period of growth in the years to come. ”
Under the ownership of Platinum Equity, JM Swank strengthened its national presence by acquiring Lentz Milling Company in 2018 to expand the company’s reach into the Mid-Atlantic and Northeast. The company also developed its sales force and implemented new ERP, CRM, WMS, HR and financial technological solutions.
“Using Platinum’s operational and financial toolkit has taken us to a new level in the future,” said Randy Cimorelli, CEO of JM Swank. “Scale and resources combined will provide a bigger and better platform to serve our customers and dominate the food ingredient distribution market. Truly a special business combination.”
The closing of the acquisition is subject to certain contractual conditions and regulatory approvals and is expected to be finalized during the third quarter of 2021.
“With JM Swank, we acquire a recognized leader in the North American market in the food ingredient distribution sector,” said Christian Kohlpaintner, President and CEO of Brenntag SE. “This strategic acquisition will double the size of Brenntag in the Nutrition business in the region and thus create the leader in the distribution of food ingredients and processing chemicals. North America with about a billion US dollars In income. “
Harris williams and Wells Fargo are serving as financial advisers to Platinum Equity on the sale of JM Swank. Morgan lewis is Platinum Equity’s legal advisor on the transaction.
About platinum stocks
Founded in 1995 by Tom Gorès, Platinum Equity is a global investment firm with more than $ 25 billion of assets under management and a wallet approximately 40 operating companies serving clients around the world. The company is currently investing Platinum Equity Capital Partners V, a 10 billion dollars global buyout fund, and Platinum Small Cap Equity Fund, a $ 1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and transactions – a branding strategy she calls M&A & O® – acquire and operate companies in a wide range of business markets including manufacturing, distribution, transportation and logistics, equipment rental, metals related services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years, Platinum Equity has made over 300 acquisitions.
SOURCE Platinum Action