Brenntag Boosts US Nutrition with JM Swank Buy
Brenntag is to buy US-based Storm Chaser Holding, also known as JM Swank, a leading distributor of food ingredients, in its third acquisition so far this year. The transaction is expected to close during the third quarter of 2021.
Platinum Equity, the current owner of JM Swank, previously acquired the distributor from US food giant ConAgra in July 2016.
Headquartered in North Liberty, Iowa, JM Swank reported sales of about $500 million in 2020. Its product range includes food ingredients such as spices, dairy, grain, sweeteners, fats & oils, texturants, flavors & colors, starches, cocoa and inclusion. The company also operates a network of distribution centers and warehouses across the US.
“This strategic acquisition will double Brenntag’s size in the nutrition business in the region and thus creates the leading food ingredients and food process chemicals distributor in North America with around $1 billion in revenue,” said Brenntag’s CEO Christian Kohlpaintner.
Henri Nejade, member of Brenntag’s management board and chief operating officer of Brenntag Specialties, added: “JM Swank has significant potential for continued future growth. The company provides Brenntag Specialties with an extended platform for strategic growth and strengthens our footprint in North America and the Americas as a region.”
In January this year, Brenntag also agreed to buy Chinese specialty food ingredients distributor Zhongbai Xingye Food Technology (Beijing). The deal is split into two parts – Brenntag is initially buying a majority 67% stake and will buy the remaining 33% by the end of 2024.
Also on January, the German international distributor announced its intention to buy ICL Packed, a UK specialist supplier of packed chemicals for water treatment.
Elaine Burridge, Freelance Journalist
