The CEO of Hawkins Inc. calls the $157 million acquisition of Stauber Performance Ingredients "transformational for us."
Patrick Hawkins said Monday that Hawkins has been hit by pricing pressure from some customers, who are seeing flat to declining sales. In contrast, Stauber's customer base is growing dramatically and offers Hawkins "good synergies."
"We are excited about this," he said.
The deal, announced on Monday, is the largest purchase in Hawkins' history. Stauber is well known for quality dry blending and chemical distribution services aimed at nutritional, food, pharmaceutical, cosmetic and pet product makers — industries in which Hawkins is a minor player.
Roseville-based Hawkins is better known for its liquid wastewater treatment chemicals, crop fertilizers and industrial and food/dairy chemicals.
With Stauber on board, Hawkins gains $117 million in annual revenue and 160 employees mostly in New York and California. Combined, the new Hawkins Inc. will have about $500 million in sales and 630 employees.
Hawkins Inc., founded in 1938 by Patrick Hawkins' grandfather, exports some goods to Europe and Canada, but is mostly a domestic distribution firm with 41 warehouses in the Midwest. About one-third of the business involves chemical blending and manufacturing. With Stauber, which only deals in distribution, the manufacturing arm will drop to about 25 percent of the combined business.
Stauber CEO Dan Stauber said he is "delighted to be involved in setting the strategic direction for the combined entities." He will be active identifying opportunities and resources that can be leveraged within the larger organization," he said.
