M&A
confidence high
sentiment positive
materiality 0.80
Balchem to acquire Kappa Bioscience for $338M; accretive to EPS in 2022
BALCHEM CORP
- Enterprise value of NOK 3.175B (~$338M); EV/EBITDA multiple of 18x on 2022 forecast.
- Kappa's FY2022 forecast revenues ~NOK 500M (~$53M) with strong growth and margin profile.
- Additional earn-out potential of 0% to 16% of enterprise value in 2024 based on performance.
- Closing expected Q2 2022; financed via existing revolver and cash on hand.
- Deal expected to be accretive to Balchem's adjusted EPS in 2022.