SensoryEffects® Enters Into Definitive Agreement To Be Acquired By Balchem Corporation

ST. LOUIS, MO (March 31, 2014) – Performance Chemicals & Ingredients Company (d/b/a SensoryEffects), a leader in food and beverage ingredient systems, has entered into a definitive agreement to sell all of its outstanding shares to Balchem Corporation (NASDAQ: BCPC), a human and animal health and wellness company. The transaction is subject to certain regulatory approvals and customary closing conditions. The purchase price is $567 million and is expected to close within the next forty days. SensoryEffects expects to have 2014 revenues of approximately $260 million and EBITDA of approximately $53 million. The acquisition purchase price reflects a multiple of 10.7 times estimated 2014 EBITDA, excluding any deal related costs and synergies. SensoryEffects’ management team will continue to lead the food and beverage business and Balchem’s Food, Pharma and Nutrition business unit will be merged with SensoryEffects, creating the largest business segment in Balchem with sales of over $300 million.

SensoryEffects provides customized, technology-driven food and beverage solutions including ingredients, bases and finished food systems for leading multinational and emerging high-growth food and beverage customers. The company’s solutions enhance vital sensory properties such as taste, texture, solubility, aroma and color that make its customer’s products more desirable to the end consumer. SensoryEffects is a leader in powder, solid and liquid flavor systems, creamer and specialty emulsified powders, cereal-based products and other functional ingredient food and beverage delivery systems. Through the dual strategy of innovation and efficiency, coupled with leading food safety and quality, SensoryEffects has built a strong and broad customer base as a result of a well-executed business model.

Balchem is a leader in human and animal health nutrition with value added functional and solution-based ingredients. Balchem’s technologies apply across a broad spectrum of end markets with a proprietary portfolio of solutions that differentiate products for commercial bakers, confectioners, flavor specialists, meat processors, nutraceutical and functional food producers, drug manufacturers, production and companion animals, and beyond. Balchem has been a pioneer in, and is one of the world’s leading providers of novel microencapsulated lipid ingredient solutions. In addition, Balchem has been creating innovative products with human grade choline for many years and is the leading global producer of this essential nutrient.

Charles A. Nicolais, Chairman, President and CEO of SensoryEffects said, “We are excited to enter into this agreement with Balchem, who is an ideal partner for us, strengthening our position by merging our business with its encapsulation and functional choline ingredients. Balchem is synonymous with the best in animal and human nutrition, and together, we look forward to delivering new and innovative ingredient solutions to our customers in the food and beverage industry.”

“We have found a unique complement for Balchem with SensoryEffects,” said Chairman, President and CEO of Balchem Dino A. Rossi. He continues, “Both of our companies have built stellar reputations for quality products that address the food and beverage industry’s most specialized needs. The prospects of a combined Balchem and SensoryEffects will canvass an even broader range of food customers. The united experience and technical problem solving capabilities will ultimately make our company one of the most comprehensive food ingredient solution companies globally.”

About SensoryEffects®

SensoryEffects, headquartered in St. Louis, MO is a supplier of customized food and beverage ingredients and products with three business units: SensoryEffects Powder Systems in Defiance, OH; SensoryEffects Flavor Systems in Bridgeton, MO, and SensoryEffects Cereal Systems in Lincoln, NE. The company, founded by Charles A. Nicolais in St. Louis, MO and backed by Highlander Partners, L.P. of Dallas, TX, has grown to become a leading food and beverage ingredient supplier. SensoryEffects employs over 400 employees, operates six manufacturing facilities and serves a large US and International customer base.

About Balchem Corporation

Balchem Corporation consists of three business segments: ARC Specialty Products; Food, Pharma & Nutrition; and Animal Nutrition & Health. Through ARC Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries. The Food, Pharma & Nutrition segment provides proprietary microencapsulation solutions to a variety of applications in the human food, pharmaceutical and nutrition marketplaces. The Animal Nutrition & Health segment manufactures and supplies products to numerous animal health markets and certain derivative products into industrial applications.

For more information from SensoryEffects, please call 800.957.3130, email info@sensoryeffects.com or visit www.sensoryeffects.com.

For more information from Balchem Corporation, please call 845-326-5600, email bcpc-ir@balchem.com or visit www.balchem.com.