Universal Corporation
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“Shank’s has been providing high-quality products and services for more than 120 years, earning a reputation for consistency, traceability and dependability. This has allowed us to build a strong portfolio of long-tenured, blue-chip customers. As part of Universal Corporation, Shank’s will benefit from the resources and scale of a global organization as we look to expand our offerings and enter new, lucrative end markets,” said Jeffrey Lehman, President-owner of Shank’s.
Shank’s integrated manufacturing operations allow it to produce, package and deliver its final product consistently and dependably, in customers’ preferred packaging. Boasting decades-long working relationships with its sourcing partners, Shank’s has a secure supply chain with global traceability that protects its strong position in the fast-growing specialty flavorings market.
Universal Corporation expects the transaction to close in calendar-year fourth quarter, subject to customary closing conditions, and anticipates the acquisition will be accretive to earnings in fiscal year 2023. 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.
Universal Corporation expects to fund the transaction with cash on hand and borrowings under its committed revolving credit facility. The Company remains committed to increasing its quarterly dividend on an annual basis, as it has done for 51 consecutive years.
Advisors
Troutman Pepper Hamilton Sanders LLP acted as legal counsel to Universal Corporation. SC&H Capital acted as financial advisor to Shank’s, and Cozen O’Connor P.C. acted as legal counsel.
About Universal Corporation
Universal Corporation (NYSE: UVV), headquartered in Richmond, Virginia, is a global business-to-business agri-products supplier to consumer product manufacturers, operating in over 30 countries on five continents, that sources and processes leaf tobacco and plant-based ingredients. Tobacco has been the Company’s principal focus since its founding in 1918, and Universal is the leading global leaf tobacco supplier. Through the Company’s plant-based ingredients platform, it provides a variety of value-added manufacturing processes to produce high-quality, specialty vegetable- and fruit-based ingredients for the food and beverage end markets. Universal has been finding innovative solutions to serve its customers and meet their agri-product needs for more than 100 years. The Company’s revenues for the fiscal year ended March 31, 2021, were $2.0 billion. Visit www.universalcorp.com for more information on Universal Corporation and the latest Company news.
Forward Looking Statements
This release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “assume,” “estimate,” “expect,” “target” “project,” “predict,” “intend,” “plan,” “believe,” “potential,” “may,” “should,” “would” and similar expressions may identify forward looking information. Forward-looking information in these materials includes, but is not limited to: the acquisition of Shank’s; the expected closing of the Shank’s acquisition; and contributions to future earnings. The Company cautions readers that any statements contained herein regarding financial condition, results of operation, and future business plans, operations, opportunities, and prospects for its performance are forward-looking statements based upon management’s current knowledge and assumptions
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