SK Capital to acquire natural ingredient manufacturer J&K Ingredients

In a move cementing its footprint in the specialty materials and life sciences domain, SK Capital Partners, LP, a notable private investment entity, has inked a deal to procure J&K Ingredients, Inc. Renowned for its groundbreaking focus on natural, organic, and clean-label product formulations, J&K Ingredients, under the aegis of CORE Industrial Partners, has etched its name as a pioneering manufacturer and supplier in the food and beverage ingredient sector. While financial specifics remain undisclosed, the acquisition is projected to culminate by year-end.

J&K Ingredients: A Century-Long Legacy of Innovations

Operating from its headquarters in Paterson, New Jersey, J&K Ingredients stands out with its tailor-made formulations and product development expertise that underscore quality, functionality, and compliance. With its roots tracing back to 1899, the firm revolutionized the bakery niche with Bred-Mate, a novel natural mold inhibitor, over 40 years ago. Further pushing the envelope, 2019 saw the company introduce SOR-Mate, a potent clean-label substitute to potassium sorbate. This innovation spans diverse product applications, from bakery goods and beverages to snacks, pet food, and dairy. J&K’s offerings further encompass specialty ingredients, including egg & milk substitutes, emulsions, flavors, and bread bases.

Commenting on the acquisition, Mario Toukan from SK Capital emphasized J&K’s unmatched expertise, “Their unparalleled focus on innovation, underscored by SOR-Mate’s success, cements J&K Ingredients’ status as the go-to supplier of natural preservatives. Their offerings are not restricted to the bakery sector, expanding horizons for clients across the food and beverage spectrum.”

Echoing similar sentiments, Dan Lory from SK Capital highlighted their eagerness to join forces, envisioning a new growth era for J&K, while Ricardo Alvarez, J&K Ingredients’ CEO, praised SK Capital’s proven track record in the ingredients sector.

Legalities and Financial Backbone of the Deal

Leading legal firm, Kirkland & Ellis LLP, stands as the legal pillar for SK Capital throughout this transaction. On the financial front, backing for debt financing is set to come from stalwarts such as KeyBanc Capital Markets, Kayne Anderson Private Credit, and Benefit Street Partners.