Hawkins has announced that it recently completed its acquisition of Stauber Performance Ingredients from ICV Partners II, L.P. and its other shareholders in a cash for stock transaction.
"We are extremely pleased to be adding the Stauber business and its employees to the Hawkins' organization. As we stated before, this acquisition marks the largest in Hawkins' history, and it is transformational for us. We previously stated our intent to expand our portfolio of value-added specialty products within new markets. This acquisition accelerates that strategy. Hawkins has gained a wider array of products and a customer base outside of our traditional focus. At the same time, Stauber's distribution model is one we know well. With Hawkins' long-term perspective and available capital, we can make key growth investments to maximize the significant potential we see with this new business segment," said Patrick H. Hawkins, Chief Executive Officer of Hawkins.
Mr. Hawkins continued, "Stauber shares our value of placing the customer first and has built a high-quality dry blending and distribution business focused on a broad spectrum of solutions serving a wide-breadth of long-term, brand-name customers. I have had the pleasure of spending time with many of the Stauber leaders during the acquisition process and, like Hawkins, the quality of their people and their laser-like focus on providing quality products to a loyal customer base is why they have been so successful."
The Stauber business will be reported as a third business segment going forward to be called Specialty Ingredients.
Dan Stauber, Chief Executive Officer of Stauber, added, "As we have gotten to know Patrick and others from the Hawkins' management team over the last several months, I am even more convinced that this acquisition is absolutely the right step for Stauber at this time. I am also delighted to be involved in setting the strategic direction for the combined entities and capitalizing on the opportunities and resources that can be leveraged within the larger organization."
Founded in 1969, Stauber offers specialty products and ingredients to the nutritional, food, pharmaceutical, cosmetic and pet care industries with approximately 160 employees, and facilities in California and New York. Stauber generated revenues of approximately$117 million for the twelve months ended September 30, 2015. The combined companies will have approximately 630 employees and revenues of nearly $500 million for the twelve months ended September 30, 2015. Hawkins paid $157 million, subject to customary post-closing purchase price adjustments, to acquire the issued and outstanding shares of Stauber on a cash-free, debt-free basis.