NEW HAMPTON, N.Y. – Balchem Corp. plans to acquire Performance Chemicals & Ingredients Co., doing business as SensoryEffects, for $567 million in cash, according to a definitive agreement reached by the two companies and announced March 31.

SensoryEffects expects to have 2014 revenues of about $260 million and 2014 EBITDA of about $53 million. Based in St. Louis, SensoryEffects supplies customized food and beverage ingredients and products through three business units: SensoryEffects Powder Systems in Defiance, Ohio, SensoryEffects Flavor Systems in Bridgeton, Mo., and SensoryEffects Cereal Systems in Lincoln, Neb.

The transaction is expected to be accretive immediately to Balchem’s earnings per share. SensoryEffects management team will continue to lead the food and beverage ingredient business, which will be merged with Balchem’s Food, Pharma & Nutrition segment.

“The prospects of a combined Balchem and SensoryEffects will canvass an even broader range of food customers,” said Dino A. Rossi, chairman, president and chief executive officer of Balchem Corp. “The united experience and technical problem-solving capabilities will ultimately make our company one of the most comprehensive food ingredient solution companies globally.”

Balchem Corp. consists of three business segments: ARC Specialty Products; Food, Pharma & Nutrition; and Animal Nutrition & Health.

“We are excited to enter into this agreement with Balchem, who is an ideal partner for us, strengthening our position by merging our business with its encapsulated and functional choline ingredients,” said Charles A. Nicolais, chairman, president and c.e.o. of SensoryEffects.