Universal Corp Acquires Shank's Extracts For Undisclosed Sum

Universal Corp UVV has agreed to acquire Shank's Extracts Inc, a privately-held specialty ingredient, flavoring, and food company, for an undisclosed sum.
The Lancaster, Pennsylvania-based Shank's employs more than 200 people and has a 191,000 square foot manufacturing campus.
In addition to pure vanilla extract products, Shank's offers over 2,400 other extracts, distillates, natural flavors, and colors for industrial and private label customers worldwide.
Universal Corp expects the transaction to close in Q4 2021. It anticipates the acquisition to be accretive to earnings in FY23.
After closing the deal, Shank's will operate as part of Universal's plant-based ingredients platform, including Silva International Inc and FruitSmart Inc.
Universal Corp plans to fund the transaction with cash on hand and borrowings. It held $84.7 million in cash and equivalents as of June 30, 2021.
Price Action: UVV shares are trading higher by 0.69% at $51.30 on the last check Tuesday.