Dive Brief:
- Hawkins paid $157 million for Stauber, which has facilities in California and New York.
- Hawkins expects to report higher earnings per share post-transaction.
- With the acquisition, Hawkins accelerates its intention to expand its specialty products portfolio to new markets.
Dive Insight:
The largest acquisition ever made by Hawkins is also its most transformational, according to company officials. The recently completed closure provides Hawkins with a wider array of products and a customer base outside its traditional focus, which has been to distribute, blend and manufacture bulk and specialty chemicals for customers in a variety of industries. Stauber offers specialty products and ingredients to the nutritional, food, pharmaceutical, cosmetic and pet care industries.
With the acquisition, Hawkins adds dry processing and blending capabilities to its liquid blending business.
"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, CEO, Hawkins.
The combined companies will employ 630 people, and will have achieved approximately $500 million in revenues for the year ended Sept. 30, 2015, according to a news release. Stauber will now be called Specialty Ingredients. Hawkins is based in Roseville, Minnesota, and has 41 facilities in 19 states.
