Benzinga | Sep 7, 2021 01:54PM EDT

Universal Corp Acquires Shank's Extracts For Undisclosed Sum

* Universal Corp (NYSE: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.