Platinum Equity has agreed to sell North Liberty, Iowa-based JM Swank, a food ingredients distributor, to Brenntag. No financial terms were disclosed.
LOS ANGELES (June 23, 2021) – Platinum Equity announced today the signing of a definitive agreement to sell food ingredients distributor JM Swank to Brenntag.
JM Swank, headquartered in North Liberty, Iowa, offers a highly diversified product portfolio of food ingredients, including spices, dairy, grain, sweeteners, fats & oils, texturants, flavors & colors, starches, cocoa, and inclusions through a broad supplier base. The company generated sales of approximately $500 million in 2020 and is the only national food ingredient distributor with a fleet delivering nationwide.
Platinum Equity acquired JM Swank from ConAgra Foods in 2016.
“JM Swank exemplifies how Platinum’s approach can create value throughout the entire lifecycle of an investment,” said Platinum Equity Managing Director Adam Cooper. “Following the carve out from ConAgra, we executed a comprehensive transition and transformation program, providing the business with the tools needed to thrive as an independent company. We invested in JM Swank’s national distribution infrastructure, optimized its operations, installed an outstanding management team, and built a scalable platform that is now well positioned for a new period of growth in the years ahead.”
Under Platinum Equity’s ownership, JM Swank strengthened its national footprint, acquiring Lentz Milling Company in 2018 to expand the company’s reach in the Mid-Atlantic and Northeast. The company also grew its salesforce and implemented new ERP, CRM, WMS, HR, and finance technology solutions.
“Leveraging Platinum’s operational and financial toolbox has allowed us to take this next step into the future,” said Randy Cimorelli, Chief Executive Officer of JM Swank. “The combined scale and resources will provide a bigger and even better platform to serve our customers and lead the market in food ingredient distribution. Truly a special business combination.”
Closing of the acquisition is subject to certain contractual conditions and regulatory approvals and is expected to be completed during the third quarter of 2021.
“With JM Swank, we acquire a renowned leader in the North American market in the sector of food ingredients distribution,” said Christian Kohlpaintner, Chief Executive Officer of Brenntag SE. “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 approximately one billion US dollars in revenue.”
Harris Williams and Wells Fargo are serving as financial advisors to Platinum Equity on the sale of JM Swank. Morgan Lewis is serving as legal counsel to Platinum Equity on the transaction.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $25 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. 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 25 years Platinum Equity has completed more than 300 acquisitions.