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10/2022

DENALI INGREDIENTS acquired by ORKLA

UNITED STATES Food Processing / Ingredients EV $100–350M

Context

Orkla Food Ingredients (OFI) has agreed to acquire 84% of Denali Ingredients from the founding family. The deal includes a potential earn-out ("top-up payment") based on future growth. The seller and CEO will retain a combined ~16% stake. This acquisition increases OFI's "Sweet Ingredients" vertical by 45% and provides a strategic foothold in the US market.

DENALI INGREDIENTS, which reported an EBITDA margin of [members only] in 2019, is valued in this transaction at an EV/EBITDA multiple of 10x–18x, representing a premium to the average currently observed in the AgriFood sector (11.0x).

-> Deep-dive in AgriFood market trends

Target

Headquartered in Wisconsin, Denali Ingredients is a leading US supplier of ingredient solutions for the ice cream industry. It develops and manufactures fudges, caramels, fruit variegates, coatings, and inclusions (like cookie dough). The company operates two facilities and employs 160 people.

Ent. Value

$100–350M

Equity Value

[members only]

Multiples

EV / Revenue

1x–3x

EV / EBITDA

10x–18x

EV / EBIT

[members only]

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2019
$50–100M
$5–25M
[members only]
2018
$50–100M
$5–25M
[members only]

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09/2022JDE PEETSLES 2 MARMOTTESFRANCECoffee & Tea
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REFERENCES

Valuation range: EV $100–350M

Revenue range: $50–100M

EBITDA range: $5–25M

EV/Revenue range: 1x - 3x

EV/EBITDA range: 10x - 18x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of DENALI INGREDIENTS by ORKLA are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: denali ingredients

Acquirer: orkla