November 24 2015, David R Brown

Hawkins, Inc. (Nasdaq: HWKN) has announced that it has entered into a definitive agreement to acquire Stauber Performance Ingredients from ICV Partners II, L.P. and its other shareholders in a cash for stock transaction. 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.

This acquisition marks the largest in Hawkins' history, and it is transformational for us

Patrick H. Hawkins
Chief Executive Officer of Hawkins Inc

“We are extremely pleased to be welcoming a company of Stauber's caliber into the Hawkins organization. This acquisition marks the largest in Hawkins' history, and it is transformational for us. We have previously stated our intent to expand our portfolio of value-added specialty products within new markets. Today's announcement accelerates that strategy. Hawkins will gain 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.

Dan Stauber, Chief Executive Officer of Stauber, added, “My father started this business over 45 years ago, and I am very pleased with the opportunity for the Stauber business to increase its growth within the Hawkins organization.”

In addition, Stauber's dry processing and blending capabilities complement Hawkins’ liquid blending business and, when combined with a broad range of value-added services, provide a total solution package to a wide customer base. Stauber generated revenues of approximately $117 million for the twelve months ended September 30, 2015. Hawkins has agreed to pay $157 million, subject to customary purchase price adjustments, to acquire the issued and outstanding shares of Stauber on a cash-free, debt-free basis. The transaction is subject to customary closing conditions, including clearance under the Hart-ScottRodino Antitrust Improvements Act, and is expected to close in late December. Greene Holcomb & Fisher served as the financial advisor to Hawkins, Inc. and Piper Jaffray & Co. served as the financial advisor to ICV Partners II, L.P.

About Hawkins, Inc.
Founded in 1938, Hawkins, Inc. distributes, blends and manufactures bulk and specialty chemicals for customers across a wide range of industries in the USA. Headquartered in Roseville, Minnesota, and with 39 facilities in 17 states, the Company reported sales of $364.0 million for the fiscal year ending March 2015 and has 419 employees.

Source(s): Hawkins Press Release

Further Information

Visit: http://www.hawkinsinc.com