Balchem Corporation Announces Acquisition of Albion International, Inc.
According to a TechSci Research report “Global Chelants Market Forecast and
Opportunities, 2020”, the market for chelants is expected to surpass USD5.4
billion by 2020 owing to increasing demand across various end user industries,
including detergents, pulp and paper, textile, wastewater treatment, etc.
Detergents industry continues to be the largest end user application for chelating
agents globally.
Balchem Corporation, a US based manufacturer of specialty performance
ingredients, has acquired a mineral amino acid chelates manufacturer, that is,
Albion International, Inc. for USD111.5 million. Albion has been involved in
the manufacturing of mineral amino acid chelates, mineral complexes and
specialized mineral salts and owns more than 100 patents in plant and human
nutrition segment. Balchem Corporation, a global leader in the essential
nutrient and choline, eyes to improve its presence in the global nutritional
ingredient market with the addition of chelated minerals in its product
portfolio. Balchem would finance this transaction with cash as well as through
the revolving credit policy of the company.
In 2015, Albion International, Inc.
remunerated revenues worth USD53.5 million. Balchem Corporation operates
in four business segments, namely – SensoryEffects, Specialty Products, Industrial Products and,
Animal Nutrition and Health. The deal inked by the two companies is expected to improve the earnings per share of Balchem Corporation.
TechSci Research depicts that the acquisition would
support Balchem Corporation in strengthening its customer base for nutritional
ingredients segment with increased product offerings. Additionally, Balchem
Corporation would also improve its global presence in ingredient delivery
solutions and spray-drying segments with the acquisition of state of the art
technology possessed by Albion International, Inc.