Lancaster extract company to be acquired by Virginia tobacco company

September 7, 2021//

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Shank’s Extracts, a privately-held flavoring and food company based in Lancaster has entered a definitive agreement to be acquired by Universal Corp. by the end of the year.

The Richmond, Virginia-based leaf tobacco supplier announced on Monday that it plans to purchase Shank’s for an undisclosed amount of money. It plans to operate the company as part of its plant-based ingredients platform.

Shank’s was founded in Lancaster in 1899. Today the company offers over 2,400 extracts, distillates, natural flavors and colors for industrial and private label use.

Shank’s employs 200 people and operates a 191,000-square-foot manufacturing campus.

The deal bolsters Universal’s offerings to its customers and expands its value-added services by adding flavors, custom packaging and bottling and product development capabilities, said George Freeman III, chairman, president and CEO of Universal Corp.

“As the domestic natural food flavors market continues to accelerate, we are pleased to be able to expand our customer proposition with Shank’s portfolio of high-quality botanical extracts,” said Freeman. “Shank’s shares our commitment to food safety, as reflected in its continued investment in equipment, facilities, and its highly trained and certified employees.”

Following the transaction in the fourth quarter of 2021, Universal said it plans to keep Shank’s existing management team, which will report to Universal Global Ventures’ senior vice president.

“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.

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