Advertisement

Header Utility Menu

  • Subscribe
  • Advertise
  • Contact Us
  • Events

LinkedIn Facebook Twitter Instagram Get Our App

  • Login

Virginia Business

Mobile Menu

  • Issues
  • Industries
    • Banking/Finances
    • Law
    • Real Estate
    • Economic Development
    • Education
    • Energy/Green
    • Federal Contracting
    • Government
    • Healthcare
    • Hotels/Tourism
    • Insurance
    • Ports/Trade
    • Small Business
    • Startups
    • Technology
    • Transportation
  • Regions
    • Central Virginia
    • Eastern Virginia
    • Northern Virginia
    • Roanoke/New River Valley
    • Shenandoah Valley
    • Southern Virginia
    • Southwest Virginia
  • Reports
    • Best Places to Work
    • Business Person of the Year
    • CEO Pay
    • COVID-19
    • Generous Virginians Project
    • Legal Elite
    • Most Influential Virginians
    • Maritime Guide
    • Site Locator
    • The Big Book
    • Virginia CFO Awards
  • Company News
    • For the Record
    • People
  • Opinion
  • Lists
  • Awards/Events
    • 2022 Virginia Business Political Roundtable
    • Women in Leadership
    • Diversity Leadership Series
    • Virginia 500
    • Legal Elite
    • CFO Awards
    • Big Book of Lists
    • 100 People To Meet
    • Best Places To Work
  • Virginia 500
    • Read The Issue
    • Power Up Virginia 500
    • Buy an award plaque
    • Suggest execs for 2023

Advertisement

Header Primary Menu

  • Issues
    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • Issues Archive
  • Industries
    • Banking/Finances
    • Law
    • Real Estate
    • Economic Development
    • Education
    • Energy/Green
    • Federal Contracting
    • Government
    • Healthcare
    • Hotels/Tourism
    • Insurance
    • Ports/Trade
    • Small Business
    • Startups
    • Technology
    • Transportation
  • Regions
    • Central Virginia
    • Eastern Virginia
    • Northern Virginia
    • Roanoke/New River Valley
    • Shenandoah Valley
    • Southern Virginia
    • Southwest Virginia
  • Reports
    • Best Places to Work
    • Business Person of the Year
    • CEO Pay
    • COVID-19
    • Generous Virginians Project
    • Legal Elite
    • Most Influential Virginians
    • Maritime Guide
    • Site Locator
    • The Big Book
    • Virginia CFO Awards
  • Company News
    • For the Record
    • People
  • Opinion
  • Lists
  • Awards/Events
    • 2022 Virginia Business Political Roundtable
    • Women in Leadership
    • Diversity Leadership Series
    • Virginia 500
    • Legal Elite
    • CFO Awards
    • Big Book of Lists
    • 100 People To Meet
    • Best Places To Work
  • Virginia 500
    • Read The Issue
    • Power Up Virginia 500
    • Buy an award plaque
    • Suggest execs for 2023

Home News Universal Corp. to acquire dehydrated foods company for $170M

Universal Corp. to acquire dehydrated foods company for $170M

Acquisition of Illinois-based Silva International expected to close in October

Published September 8, 2020 by Sydney Lake

Richmond-based international tobacco leaf supply company Universal Corp. announced Tuesday it has entered into a definitive agreement to acquire Momence, Illinois-based dehydrated vegetable, fruit and herb processing company Silva International for $170 million in cash.

Following the transaction, Silva will operate as part of Universal’s plant-based ingredients platform, which includes FruitSmart Inc. (which Universal acquired in January) and Carolina Innovative Food Ingredients Inc. Universal Corp. supplies tobacco and other agricultural products to more than 30 countries across North America, South America, Europe, Asia and Africa. For its fiscal year ending March 31, 2020, the company reported $1.9 billion in revenue.

“We’re excited to have reached this agreement with Silva as we continue to diversify our offerings and generate new opportunities for value creation,” Universal Chairman, President and CEO George C. Freeman III said in a statement. “This acquisition builds on our investment in FruitSmart and expands our plant-based ingredients platform. With this acquisition, we expect these businesses to represent 10% to 20% of our EBITDA by fiscal year 2022, ahead of our previously stated target outlined as part of our capital allocation strategy.”

Founded in 1979, Silva procures more than 60 types of dehydrated vegetables, fruits and herbs from more than 20 countries. Aside from sourcing, the company processes natural raw materials into custom dehydrated vegetable- and fruit-based ingredients for end products. The company employs more than 200 people and has a 380,000-square-foot manufacturing facility.

“For more than 40 years, Silva has consistently produced flavorful, high-quality, natural specialty ingredients to meet our customers’ specifications,” Silva majority owner and CEO Heinz-Peter Schmidt said in a statement. “By joining Universal, we will be able to take advantage of opportunities for collaboration and growth while remaining true to our culture and our mission.”

Universal expects the transaction to close in October this year, according to a company statement. Following the close of the transaction, Silva President Kent DeVries will continue to run the business and report to Patrick O’Keefe, Universal Global Ventures senior vice president.

“With Silva as part of our plant-based ingredients platform, we will be able to offer customers a single source for vegetable and fruit ingredients solutions. Silva, FruitSmart, and CIFI all serve similar industries but have different product portfolios and minimal customer overlap,” Freeman said in a statement. “We expect to leverage significant commercial synergies between these businesses, and we are excited by the prospect of leveraging Universal’s global network of hundreds of thousands of farmers to drive growth across the platform.”

Harris Williams acted as a financial adviser to Universal and Troutman Pepper Hamilton Sanders LLP acted as legal counsel. Houlihan Lokey acted as a financial adviser to Silva and Winston & Strawn LLP and Torsten Steinhaus, a senior partner of Steinhaus Prof. Dr. Griesar in Frankfurt, Germany, acted as legal counsel.

 

Subscribe to Virginia Business.

Get our daily e-newsletter.

Related Stories

Virginia Business logo

Puritan Cleaners acquires HandCraft Cleaners

Richmond-based dry cleaners will now have 14 locations

Virginia Business logo

Universal Corp. completes acquisition of dehydrated foods company

Richmond tobacco leaf supplier buys Silva International

Virginia Business logo

Blue Ridge, Bay Banks announce merger

Merger of Va. banks will create a nearly $200M organization

Trending

Norfolk’s MacArthur Center mall listed for sale

Making strides

Fort Monroe development moving forward

Danville lacks housing options for workforce

Members only

Sponsored Stories

What Logistics issues will have the biggest impact on you in 2023?

In the New Year, Aim for Better Cybersecurity

4 innovative ways to create capacity

WHERE IS THE SUPPLY CHAIN WHEN YOU NEED IT?

P.A.I.N.T. Your Financial Mountain

5 Benefits of Treasury Management Services from Atlantic Union Bank

Blazing trails in the digital landscape

Advertisement

Advertisement

Trending

Norfolk’s MacArthur Center mall listed for sale

Making strides

Fort Monroe development moving forward

Danville lacks housing options for workforce

Members only

Sponsored Stories

What Logistics issues will have the biggest impact on you in 2023?

In the New Year, Aim for Better Cybersecurity

4 innovative ways to create capacity

WHERE IS THE SUPPLY CHAIN WHEN YOU NEED IT?

P.A.I.N.T. Your Financial Mountain

5 Benefits of Treasury Management Services from Atlantic Union Bank

Blazing trails in the digital landscape

Get Virginia Business directly on your tablet or in your mailbox!

Subscribe to Virginia Business

Advertisement

Advertisement

Footer Primary Menu

  • virginiabusiness.com
  • Subscribe
  • Advertise
  • About Us
  • Contact Us

Footer Secondary Menu

  • Industries
  • Regions
  • Reports
  • Company News
  • Events

Sign Up For Our Newsletter

Sign Up

LinkedIn Facebook Twitter Instagram Get Our App

Privacy Policy Cookie Policy

Footer Utility Menu

Copyright © 2023 Virginia Business. All rights reserved.

Site Maintained by TechArk