Highlander Partners’ Portfolio Company Acquires Non-Dairy Creamer Business from ACH Food Companies
Dallas, Texas, June 5, 2009 – Highlander Partners, L.P., an investment firm focusing on private equity investments in mid-market companies, today announced that a subsidiary of Highlander Partners’ majority-owned PCI Company acquired the non-dairy, emulsified powders business from ACH Food Companies, Inc. (ACH), a subsidiary of Associated British Foods, Plc. Non-dairy, emulsified powders are used in food products such as shortenings, whip toppings and creamers.
This is the fifth add-on acquisition for Highlander’s portfolio company PCI Company, a developer and producer of value-added food ingredients and products that enhance flavor, texture, color and functionality of finished branded and private label products. Under the terms of the purchase agreement, Diehl Food Ingredients®, a subsidiary of PCI and a leading developer and manufacturer of emulsified powders for the food and beverage categories, acquired certain assets of ACH’s emulsified powder and non-dairy creamer business segment for industrial and retail markets. Industrial products include those that impart flavor, whitening and consistency characteristics to beverage, nutritional and food applications. Retail products include packaged non-dairy creamers used as coffee and tea whiteners.
Over the course of the next several months, Diehl will be consolidating industrial non-dairy creamer production from ACH’s Champaign, Illinois facility to Diehl’s plant in Defiance, Ohio. Diehl will be evaluating the best strategic direction for the retail business over the next several weeks. ACH will continue to produce and supply the products under a license agreement during the transition, ensuring consistent supply and service.
Diehl cites the acquisition as one that will strengthen its product portfolio and its ability to better serve customers. “Diehl is known for our innovative formulations, product performance solutions, and dedicated customer service. We will continue to focus on delivering value-added functional ingredient technology centered on creaming agents, powdered vegetable shortenings, whip topping and dessert bases, and specialty emulsified powders,” says Jim Holdrieth, General Manager of Diehl. In addition to expanding Diehl’s product portfolio, the acquisition increases the company’s overall capabilities as a developer, marketer and producer of specialty food and beverage ingredients, demonstrating their dedication to providing solution-based products and services for a variety of applications including beverages, baking, and nutritional foods.
PCI Company has experienced rapid growth organically and through acquisitions since Highlander provided seed funding for PCI Company in May 2006 to acquire Diehl. PCI Company’s four previous acquisitions are fully integrated into the company’s operations and are performing exceptionally well even in the current difficult environment. Together with the company’s deep and seasoned management team, Highlander Partners is committed to continuing its strategy to build a special food ingredient and product company focused on a high level of customer service, innovative research and development approach and turnkey solutions for the customers’ needs.