FORT MILL, SC. – Diversey Holdings Ltd. on Dec. 6 announced it has completed the acquisition of Birko Corporation and Chad Equipment LLC, a Birko subsidiary company. Birko is a manufacturer of food safety chemical solutions for the food and beverage industry and Chad Equipment manufactures food safety equipment for the protein industries. The two companies have 100 employees in total and estimated 2021 sales of more than $40 million.
“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,” said Edwin van der Heijden, Diversey’s vice president of North America Food and Beverage. “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.”
Following the acquisition, Diversey’s food and beverage business will hold the No. 1 and No. 2 market position in every region, according to the company. The acquisition will strengthen Diversey’s market presence in the United States and Canada.
“We are truly excited to combine Birko and Chad’s expertise with our North America food and beverage business,” said Phil Wieland, chief executive officer of Diversey. “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.”
Kelly Green, chairman, president and third generation owner of Birko Corp., added, "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.”
The acquisition will also allow Diversey to expand its manufacturing capacity across the United States, giving the company better control of the supply chain “to improve fulfillment service to customers and increase efficiency throughout the plant network,” the company said.
“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.