SK Capital Announces the Acquisition of J&K Ingredients
Share This Article
PATERSON, N.J., October 11, 2023-- Funds advised by SK Capital Partners, LP (“SK Capital”), a private investment firm focused on the specialty materials, ingredients, and life sciences sectors, announced today the signing of an agreement to acquire J&K Ingredients, Inc. (“J&K” or the “Company”). Currently owned by CORE Industrial Partners (“CORE”), J&K is a market leading manufacturer and supplier of food and beverage ingredients with an emphasis on natural, organic, and clean label products. Terms of the deal were not disclosed. The transaction is expected to close before the end of the year.
Headquartered in Paterson, New Jersey, J&K is recognized as a leading food and beverage ingredient solutions provider, differentiated by its custom formulation and new product development capabilities focused on quality, function, and compliance. Founded in 1899, the Company developed the bakery industry’s first natural mold inhibitor, Bred-Mate, more than four decades ago. In 2019 the Company launched SOR-Mate, the first high efficacy clean label alternative to potassium sorbate with applications across a variety of product categories including bakery, beverages, snacks, pet food, and dairy. The Company also serves the bakery market with a complete suite of specialty ingredients such as egg & milk replacers, emulsions, flavors, and bread bases.
Mario Toukan, Managing Director at SK Capital, said “Under its experienced leadership team which prioritizes compliance, custom solutions, and maximizing value for customers, we believe J&K Ingredients will continue to be the premier supplier of natural preservatives in a constantly evolving market. The Company’s deep expertise and focus on innovation, exemplified by the breakthrough and success of SOR-Mate, not only makes it an essential partner to the bakery market, but opens its doors for customers seeking clean label solutions across the food and beverage industry.”
“As a differentiated provider of high value solutions to its customers, J&K represents a business with which we seek to partner,” said Dan Lory, Principal at SK Capital. “We are excited to leverage our expertise in the food ingredient industry and collaborate with J&K to usher in the next phase of growth, building an attractive ingredients platform driven by a proactive commercial strategy and recognized for its comprehensive offering.”
“SK Capital’s history of success in the food and beverage and broader ingredients industry and its focus on accelerating growth make them an ideal partner for J&K. Most importantly, they share our belief that J&K is uniquely positioned for the long term to capitalize on the industry-wide movement to clean label products and are committed to investing in its growth. We look forward to working together to bring ‘better for you’ products to consumers,” said Ricardo Alvarez, CEO of J&K Ingredients.
Kirkland & Ellis LLP acted as legal counsel to SK Capital. Debt financing will be provided by KeyBanc Capital Markets, Kayne Anderson Private Credit, and Benefit Street Partners.
About SK Capital:
SK Capital is a private investment firm with a disciplined focus on the specialty materials, ingredients, and life sciences sectors. The Firm seeks to build resilient, sustainable, and growing businesses that create substantial long-term economic value. SK Capital aims to utilize its industry, operating, and investment experience to identify opportunities to transform businesses into higher performing organizations with improved strategic positioning, growth, and profitability, as well as lower operating risk. SK Capital’s portfolio of businesses generates revenues of approximately $17 billion annually, employs more than 25,000 people globally, and operates more than 200 plants in over 30 countries. The Firm currently has approximately $7.9 billion in assets under management. For more information, please visit www.skcapitalpartners.com.
About J&K Ingredients:
Founded in 1899, J&K Ingredients is a leading manufacturer in the world of bakery, food & beverage, and pet food ingredients, that has carved a niche in food preservation solutions. J&K Ingredients work with a diverse range of industry segments including the baking industry, food processing and manufacturing, foodservice providers, food packaging industry, and the nutraceuticals and functional foods sector. With its deep technical expertise and customer service, J&K Ingredients helps businesses and organizations maintain the quality and freshness of their food products. Headquartered in and operating three facilities in Paterson, New Jersey, J&K Ingredients holds FDA, Halal, Kosher, FSSC 22000, and organic certifications. For more information, visit www.jkingredients.com.