Universal Corporation completed the acquisition of Shank's Extracts, Inc. from Jeffrey F. Lehman.
October 03, 2021
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Universal Corporation (NYSE:UVV) entered into a definitive agreement to acquire Shank's Extracts, Inc. from Jeffrey F. Lehman for approximately $120 million on September 6, 2021. The consideration will be paid in cash. The consideration is subject to adjustment. In a related transaction, Universal Corporation entered into an agreement to acquire real property with Shank's Properties, an affiliate of Shanks. Following the close of the transaction, Shank's will operate as part of Universal's plant-based ingredients platform, which includes Silva International, Inc. ("Silva") and FruitSmart, Inc. ("FruitSmart") and will become a wholly owned direct or indirect subsidiary of Universal Corporation. Universal Corporation expects to fund the transaction with cash on hand borrowings under its committed revolving credit facility. Following the close of the transaction, the existing management team will continue to run the business and report to J. Patrick O'Keefe, Senior Vice President of Universal Global Ventures, Inc. The transaction is subject to customary closing conditions, including Consents from, and declarations, filings, and registrations with, Governmental Authorities or third parties, executing retention bonus agreement, completion of Pre-Closing Reorganization of Shanks into Rolling Rock Transit Company. Universal Corporation expects the transaction to close in calendar-year fourth quarter or by the end of calendar year-end 2021. The transaction anticipates the acquisition will be accretive to earnings in fiscal year 2023. John Owen Gwathmey of Troutman Pepper Hamilton Sanders LLP acted as legal counsel to Universal Corporation. SC&H Capital acted as financial advisor to Shank's, and Larry P. Laubach of Cozen O'Connor P.C. acted as legal counsel. Houlihan Lokey Capital, Inc. acted as fairness opinion provider to Universal Corporation.
Universal Corporation (NYSE:UVV) completed the acquisition of Shank's Extracts, Inc. from Jeffrey F. Lehman on October 4, 2021.
Universal Corporation is a global leaf tobacco supplier. The Company is a business-to-business Agri-products supplier to consumer product manufacturers, operating in over 30 countries. Through its plant-based ingredients platform, it provides a variety of value-added manufacturing processes to produce specialty vegetable- and fruit-based ingredients as well as botanical extracts and flavorings for human and pet food end markets. It operates through two segments: Tobacco Operations and Ingredients Operations. The Tobacco Operations segment activities involve contracting, procuring, processing, packing, storing, and shipping leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products. It also provides physical and chemical product testing and smoke testing for tobacco customers. The Ingredients Operations segment provides its customers with a broad variety of plant-based ingredients for both human and pet consumption.
UNIVERSAL CORPORATION 
