Harris Williams Advises JM Swank on its Pending Sale to Brenntag

Rhea-AI Summary

Harris Williams is advising JM Swank, a food ingredient distributor owned by Platinum Equity, on its sale to Brenntag. This transaction reflects the ongoing strength in the food ingredient sector, which has shown resilience against economic downturns. JM Swank is well-positioned with a broad portfolio across various markets including bakery, meats, and pet food. Brenntag, a leader in chemical distribution, aims to enhance its service offerings with this acquisition. Platinum Equity has a solid history in M&A and operates a $10 billion buyout fund.

Positive

• Strength in the food ingredient sector indicates resilience against economic fluctuations.
• JM Swank's diverse product portfolio across multiple markets enhances its value.
• Brenntag's acquisition of JM Swank aims to elevate service offerings.

Negative

• None.

Harris Williams, a global investment bank specializing in M&A advisory services, announces it is advising JM Swank, a portfolio company of Platinum Equity, on its pending sale to Brenntag (XTRA:BNR). JM Swank is a leading U.S. food ingredient distributor with national reach. The transaction is being led by Tim Alexander, Brant Cash, Andy Warczak, Richard Furseth and Cam Cornwell of the Harris Williams Consumer Group.

“JM Swank is widely recognized as a critical supply chain partner to its diverse customer base,” said Tim Alexander, a managing director at Harris Williams. “JM Swank’s exclusive focus on food ingredients brings significant value to its customers, and the partnership with Brenntag will take that service to the next level.”

“M&A activity in the broader food ingredient sector continues to be strong across several categories as well as throughout the supply chain, which includes manufacturers and distributors,” said Brant Cash, a managing director at Harris Williams. “The sector has been insulated from broader economic conditions and continues to benefit from strong demand across diverse end markets, including consumer packaged goods and foodservice.”

With its varied and broad product portfolio and supplier base, JM Swank works hard to meet its customers’ product needs and build supply chain efficiency. JM Swank services the bakery and snack; meats; organic; non-GMO; pet food; and soups, sauces, and dressing markets nationwide. With warehouses strategically located throughout the United States, JM Swank’s fleet and BRC certified facilities deliver full compliance and food safety standards.

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.

Brenntag is the global market leader in chemicals and ingredients distribution. The company holds a central role in connecting customers and suppliers of the chemical industry. Headquartered in Essen, Germany, Brenntag has more than 17,000 employees worldwide and operates a network of more than 670 sites in 77 countries. In 2020, Brenntag generated sales of around 11.8 billion euros. The two global divisions, Brenntag Essentials and Brenntag Specialties, provide a full line portfolio of industrial and specialty chemicals and ingredients as well as tailor-made application, marketing and supply chain solutions, technical and formulation support, comprehensive regulatory know-how, and digital solutions for a wide range of industries. In the field of sustainability, Brenntag pursues specific goals and is committed to sustainable solutions in its own sector and the industries served. Brenntag shares are listed at the Frankfurt Stock Exchange and are included in the MDAX and DAX 50 ESG.

Harris Williams, an investment bank specializing in M&A advisory services, advocates for sellers and buyers of companies worldwide through critical milestones and provides thoughtful advice during the lives of their businesses. By collaborating as one firm across Industry Groups and geographies, the firm helps its clients achieve outcomes that support their objectives and strategically create value. Harris Williams is committed to execution excellence and to building enduring, valued relationships that are based on mutual trust. Harris Williams is a subsidiary of the PNC Financial Services Group, Inc. (NYSE: PNC).

The Harris Williams Consumer Group has completed transactions across a variety of verticals, including branded consumer products; consumer services; food, beverage and agribusiness; and restaurant and retail. For more information on the Harris Williams Consumer Group and recent transactions, visit the Consumer Group’s section of the Harris Williams website.

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 8th Floor, 20 Farringdon Street, London EC4A 4AB, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. DE321666994). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.

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FAQ

What is the significance of JM Swank's sale to Brenntag?

The sale highlights ongoing strength in the food ingredient sector, indicating positive market conditions.

Who is advising JM Swank on its sale?

Harris Williams is the advisor for JM Swank in its pending sale to Brenntag.

What markets does JM Swank serve?

JM Swank serves various markets including bakery, meats, pet food, and sauces.

What is the role of Platinum Equity in this transaction?

Platinum Equity is the current owner of JM Swank and is known for its M&A expertise.

How does this acquisition impact Brenntag's operations?

The acquisition is expected to enhance Brenntag's service offerings in the food ingredients sector.