Balchem Corporation engages in the development, manufacture and marketing of specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical and medical sterilization industries. The company has three domestic subsidiaries which are wholly-owned: Performance Chemicals and Ingredients Company (d/b/a/ SensoryEffects) (PCI); BCP Ingredients, Inc. (BCP); and Aberco, Inc. The company also operates two wholly-owned subsidiaries in Europe: Balchem BV and Balchem Italia Srl. Segments The company operates in three segments: SensoryEffects; Animal Nutrition & Health; and Specialty Products. SensoryEffects (formerly Food, Pharma & Nutrition (FPN)) segment In 2014, the company acquired 100 percent of the outstanding common shares of Performance Chemicals & Ingredients Company (d/b/a SensoryEffects), a privately held supplier of customized food and ingredient systems, headquartered in St. Louis, Missouri. SensoryEffects offers powder, solid and liquid flavor systems, creamer and specialty emulsified powders, cereal-based products and other functional ingredient food and beverage delivery systems. SensoryEffects was merged with the company’s Food, Pharma & Nutrition segment and the segment was renamed ‘SensoryEffects’. FPN provides microencapsulation solutions to various applications in food, pharmaceutical and nutritional ingredients to enhance performance of nutritional fortification, processing and packaging applications and shelf-life for applications in baked, refrigerated and frozen dough, processed meats, seasoning blends, confections, and nutritional supplements. The company also produces and markets human grade choline for wellness applications. Animal Nutrition & Health segment The Animal Nutrition & Health segment provides nutritional products derived from its microencapsulation and chelation technologies in addition to basic choline chloride. For ruminant animals, its microencapsulated products boost health and milk production, delivering nutrient supplements that are biologically available, providing required nutritional levels. The company’s proprietary chelation technology, its KEYSHURE line products, provides enhanced nutrient absorption for various species of production and companion animals and is marketed for use in animal feed throughout the world. The company also manufactures and supplies choline chloride, an essential nutrient for monogastric animal health, predominantly to the poultry, pet and swine industries. This segment also includes the manufacture and sale of methylamines. Specialty Products segment The Specialty Products segment operates commercially as ARC Specialty Products. Ethylene oxide, at the 100% level, is sold as a sterilant gas, primarily for use in the health care industry. It is used to sterilize a range of medical devices because of its versatility and effectiveness in treating hard or soft surfaces, composites, metals, tubing and different types of plastics without negatively impacting the performance of the device being sterilized. The company’s 100% ethylene oxide product is distributed in uniquely designed, reusable, double-walled, stainless steel drums to assure compliance with safety, quality and environmental standards as outlined by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Transportation (DOT). Contract sterilizers and medical device manufacturers are principal customers for this product. The company also sells single use canisters with 100% ethylene oxide for sterilizing re-usable devices typically processed in autoclave units in hospitals. Propylene oxide is marketed and sold as a fumigant to aid in the control of insects and microbiological spoilage; and to reduce bacterial and mold contamination on certain shell and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs and prunes. The company distributes its propylene oxide product primarily in recyclable, single-walled, carbon steel cylinders according to standards outlined by the EPA and the DOT. Propylene oxide is also sold to customers seeking smaller quantities and whose requirements include utilization in various chemical synthesis applications, such as increasing paint durability and manufacturing specialty starches and textile coatings. Intellectual Property The company holds 16 patents in the United States and overseas and uses certain trade-names and trademarks. Its patents in the U.S. expire between 2016 and 2024. Research and Development As of December 31, 2014, the company incurred research and development expenses of approximately $4.8 million on company-sponsored research and development for new products and improvements to existing products and manufacturing processes. Sales and Marketing The company sells its products through its own sales force, independent distributors and sales agents. Environmental/Regulatory Matters The Federal Insecticide, Fungicide and Rodenticide Act, a health and safety statute, requires that certain products within the company’s Specialty Products segment must be registered with the EPA because they are considered pesticides. It holds EPA registrations permitting the company to sell ethylene oxide as a medical device sterilant and spice fumigant and propylene oxide as a fumigant of nuts and spices. History Balchem Corporation was founded in 1967. The company was incorporated in the state of Maryland in 1967.
(BCPC:Consolidated Issue Listed on NASDAQ Global Select )
52 Sunrise Park Road
New Hampton, NY 10958
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