Diversey Holdings, Ltd. (NASDAQ: DSEY), a leading provider of
hygiene, infection prevention and cleaning solutions, today
announced it has completed the acquisition of Birko Corporation, a
North American manufacturer of food safety chemical solutions for
the food and beverage industry, and Chad Equipment LLC, a
subsidiary of Birko Corporation, which manufactures food safety
equipment for the protein industries, with approximately 100
employees in total. With estimated 2021 sales of more than $40
million, this acquisition strengthens Diversey’s market presence in
the United States and Canada, enhancing its scale, service and
product offering, and creating numerous cross-sell and revenue
opportunities as a truly global provider in the food and beverage
industries.
Commenting on the transaction, Edwin van der
Heijden, Diversey’s VP North America Food and Beverage said, “The
combination of Diversey, Birko and the Chad Equipment Division will
provide our customers with an advanced range of solutions that
protect food safety, improve operational efficiency and increase
the sustainability of their operations. We anticipate enhanced
value for our customers, combining innovative chemistry,
state-of-the-art equipment and engineering expertise into leading
solutions for all sectors in the food and beverage
industry.”
Diversey’s Chief Executive Officer, Phil Wieland
commented, “We are truly excited to combine Birko and Chad’s
expertise with our North America food and beverage business.
Closing this transaction is the first investment facilitated by our
recent equity raise to accelerate growth and drive shareholder
value. This acquisition is representative of our deep pipeline of
growth investments and we will continue to pursue strategic and
accretive M&A opportunities in the large, fragmented markets in
which we operate. With this acquisition, we believe Diversey’s food
and beverage business now has the #1 or #2 market position in every
region, which further enhances our ability to win business with
global customers. Within the U.S., Birko and Chad’s sales, service
and manufacturing footprint will significantly improve our
capability to serve customers, particularly in the central and
western United States. Although the purchase agreement with the
seller prohibits us from disclosing specific financials and deal
terms, I can reiterate our M&A strategy is to acquire great
businesses at 6x to 10x EBITDA with a medium term post-synergy
multiple of 5x to 6x, and I can confirm this deal is consistent
with that strategy.”
Kelly Green, Chairman, President and third
generation owner of Birko Corporation, explained: "The sale of the
Birko and Chad business to Diversey represents an opportunity to
continue our proud legacy of protecting the food chain with the
resources and backing of a global leader. We are all confident that
this is the best solution for our brands, our employees and our
customers.”
“We have a shared philosophy built around food
safety and protecting the entire food chain. We look forward to
bringing both companies together and providing exceptional
solutions for the food and beverage industry,” said Mark Swanson,
CEO of Birko.
About Birko Corporation Saving lives.
Reducing costs, liability and risk. Birko is an integration of
environmentally responsible chemistry, state-of-the-art equipment,
and custom technological solutions for the meat, produce, and
beverage industries. Combined with Birko’s renowned service, our
partners receive excellent food safety solutions and unmatched
value. It’s all part of The Birko Advantage. Visit
www.birkocorp.com for more information.
About Diversey Diversey’s
mission is to protect and care for people through leading hygiene,
infection prevention, and cleaning solutions. We develop and
deliver innovative products, services, and technologies that save
lives and protect our environment. Over the course of 95 years, the
Diversey brand has become synonymous with product quality, service,
and innovation.
For more information, visit www.diversey.com or follow
us on LinkedIn, Facebook, or Twitter @diverseyfoodbev.
Cautionary Statements Regarding
Forward-Looking Information
This press release contains forward-looking
statements that are subject to substantial risks and uncertainties.
All statements other than statements of historical fact included in
this press release, including statements regarding expected
benefits for Diversey and its clients from the acquisition of Birko
Corporation and Chad Equipment LLC, potential further expansion and
manufacturing capabilities, additional M&A opportunities and
pipeline, and our business strategy are forward-looking statements.
You can identify forward-looking statements by the fact that they
do not relate strictly to historical or current facts. These
statements may include words such as “anticipate”, “estimate”,
“expect”, “project”, “plan”, "potential", "predict", “intend”,
“believe”, “may”, "might", “will”, "would", “should”, “can have”,
"could", "continue", and other words and terms of similar meaning
although not all forward-looking statements contain these
identifying words. All forward-looking statements involve unknown
risks, and other important factors that may cause actual results
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements, including: (i) our inability to
realize the benefits from the acquisition, including competitive,
manufacturing and supply chain advantages; (ii) our inability to
effectively incorporate the acquired businesses into our business
operations; (iii) our inability to find businesses that are
consistent with our strategy and execute further acquisitions; (iv)
the continuation of the COVID-19 pandemic, which could disrupt our
operations, customer demand, and our suppliers’ ability to support
us; (v) uncertain global economic conditions which have had and
could continue to have an adverse effect on our consolidated
financial condition and results of operations; (vi) raw material
pricing, availability and allocation by suppliers as well as
energy-related costs; (vii) failure to obtain manufacturing
components, supplies and related materials from third-parties;
(viii) competition in the markets for our products and services and
in the geographic areas in which we operate; and the other risks
described under “Risk Factors” in Diversey’s prospectus dated March
24, 2021 filed with the Securities and Exchange Commission in
connection with our recently completed IPO.
While we believe that our assumptions are
reasonable, we caution that it is very difficult to predict the
impact of known factors, and it is impossible for us to anticipate
all factors that could affect our actual results. All written and
oral forward-looking statements attributable to us, or persons
acting on our behalf, are expressly qualified in their entirety by
these cautionary statements as well as other cautionary statements
that are made from time to time in our other SEC filings and public
communications. You should evaluate all forward-looking statements
in the context of these risks and uncertainties.
The forward-looking statements included herein are made only as
of the date hereof. We undertake no obligation to update or revise
any forward-looking statement as a result of new information,
future events or otherwise, except as otherwise required by
law.
Diversey Holdings, Ltd.
Investor Contact: Grant Graver
ir@diversey.com
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