St. Louis-based Performance Chemicals & Ingredients Co. (dba SensoryEffects), a leader in food and beverage ingredient systems, has entered into a definitive agreement to sell all of its outstanding shares to Balchem Corp., a human and animal health and wellness company in Hampton, N.Y. 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.
SensoryEffects expects to have 2014 revenues of approximately $260 million and EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately $53 million. The acquisition purchase price reflects a multiple of 10.7 times estimated 2014 EBITDA, excluding any deal-related costs and synergies.