Platinum Equity has acquired Reading, Pennsylvania-based Lentz Milling Company, a provider of food ingredient distribution services. No financial terms were disclosed. Platinum Equity will merge Lentz with portfolio company JM Swank.
LOS ANGELES, March 01, 2018 (GLOBE NEWSWIRE) — Platinum Equity today announced the acquisition of Lentz Milling Company. Financial terms of the transaction were not disclosed.
Lentz, based in Reading, Pennsylvania, provides food ingredient distribution services to food manufacturers, commercial bakeries, retail bakeries, and other customers throughout 10 states in the Mid-Atlantic and Northeast regions. The company primarily distributes bakery-related products such as flour, sugar and sweeteners, bakery mixes, shortenings and fillings.
Lentz is combining with JM Swank, which Platinum Equity acquired from ConAgra Foods in 2016. JM Swank is a national food ingredient sourcing and distribution business based in North Liberty, Iowa.
JM Swank CEO Shawn Meaney said Lentz fills an important need in the mid-Atlantic and Northeastern United States.
“Lentz has been serving customers in the Mid-Atlantic and Northeast for over 75 years and has a well-earned reputation for quality service,” said Mr. Meaney. “This will immediately expand our presence in the region and create a strong platform to grow.”
Lentz President Ted Lentz, who is staying on following the transition to new ownership, said joining forces with JM Swank will create new opportunities.
“JM Swank is the perfect fit for our company,” said Mr. Lentz. “This transaction will allow us to continue running our existing operations while providing greater access to capital and an expanded product line that we can offer to both new and existing customers.”
Platinum Equity Principal Adam Cooper said that growing JM Swank organically and through additional M&A activity is a high priority.
“Following the carve out from ConAgra, JM Swank is an outstanding platform for growth as a standalone company,” said Mr. Cooper. “We are pleased that Ted has confidence in our ability to support Lentz Milling in the next chapter of its evolution and we are actively seeking other similar opportunities to broaden JM Swank’s reach and expand its capabilities.”
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with $13 billion of assets under management and a portfolio of more than 30 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 22 years Platinum Equity has completed more than 200 acquisitions.