Hawkins, Inc. (Hawkins) operates as a specialty chemical and ingredients company.
The company formulates, distributes, blends and manufactures products for the company's Industrial, Water Treatment and Health and Nutrition customers.
Segments
The company conducts its business in three segments: Industrial, Water Treatment, and Health and Nutrition.
Industrial segment
The company's Industrial segment specializes in providing industrial chemicals, products and services to industries such as a...
Hawkins, Inc. (Hawkins) operates as a specialty chemical and ingredients company.
The company formulates, distributes, blends and manufactures products for the company's Industrial, Water Treatment and Health and Nutrition customers.
Segments
The company conducts its business in three segments: Industrial, Water Treatment, and Health and Nutrition.
Industrial segment
The company's Industrial segment specializes in providing industrial chemicals, products and services to industries such as agriculture, chemical processing, electronics, energy, food, pharmaceutical and plating. This group's principal products are acids, alkalis and food-grade and pharmaceutical salts and ingredients.
The Industrial segment:
Manufactures sodium hypochlorite (bleach), certain food-grade and pharmaceutical products, including liquid phosphates, lactates and other blended products, and agricultural products;
Receives, stores and distributes various chemicals in bulk quantities, including liquid caustic soda, sulfuric acid, hydrochloric acid, urea, phosphoric acid, aqua ammonia and potassium hydroxide;
Repackages water treatment chemicals for the company's Water Treatment segment and bulk industrial chemicals to sell in smaller quantities to its customers; and
Performs custom blending of chemicals according to customer formulas and specifications.
The company's sales are concentrated primarily in the central United States, while the group sells food and pharmaceutical products, as well as some agricultural products, nationally. The Industrial segment relies on a specially trained sales staff that works directly with customers on their specific needs. The segment conducts its business primarily through manufacturing locations and terminal operations. Agricultural sales within this segment tend to be seasonal, with higher sales during the typical planting season of March through June given the regions of the country the company serves.
Water Treatment segment
The company's Water Treatment segment specializes in providing chemicals, products, equipment, services and solutions for potable water, municipal and industrial wastewater, industrial process water, non-residential swimming pool water and agricultural water. This segment has the resources and flexibility to treat systems ranging in size from a single small well to a multi-million-gallon-per-day facility.
The segment utilizes delivery routes operated by the company's employees who typically serve as route driver, salesperson and trained technician to deliver the company's products and diagnose the company's customers' water treatment needs. The high level of service provided by these individuals allows the company to serve as the trusted water treatment expert for many of the municipalities and other customers that the company serves.
The Water Treatment segment operates out of 47 warehouses supplying products and services to customers in 46 states. The company expects to continue to invest in existing and new branches to expand the group's geographic coverage. The company's Water Treatment segment has historically experienced higher sales during April to September, primarily due to a seasonal increase in chemicals used by municipal water treatment facilities.
Health and Nutrition segment
The company's Health and Nutrition segment specializes in providing ingredient distribution, processing and formulation solutions to manufacturers of nutraceutical, functional food and beverage, personal care, dietary supplement and other nutritional food, health and wellness products. This segment offers a diverse product portfolio, including minerals, vitamins and amino acids, excipients, joint products, botanicals and herbs, sweeteners and enzymes.
The Health and Nutrition segment relies on a specially trained sales staff that works directly with customers on their specific needs. The segment's extensive product portfolio combined with value-added services, including product formulation, sourcing and distribution, and processing and blending, positions this group as a one-stop ingredient solutions provider to its customers. The segment also follows rigorous quality control and compliance processes to provide reliable, high-quality products to its customers. The segment operates out of facilities in California and New York and its products are sold nationally, and in certain cases, internationally.
Customer Concentration
In fiscal 2024, none of the company's customers accounted for 10% or more of its total sales.
Regulatory Matters
The company is subject to numerous federal, state and local environmental, health and safety laws and regulations in the jurisdictions in which the company operates, including laws and regulations relating to the management, storage, transportation and disposal of chemicals and wastes; product regulation; air, water and soil contamination; and the investigation and cleanup of any spills or releases that may result from the company's management, handling, storage, sale, or transportation of chemicals and other products. In addition, societal concerns regarding the safety of chemicals in commerce and their potential impact on the environment have resulted in a growing trend towards increasing levels of product safety and environmental protection regulations. These concerns have led to, and could continue to result in, more stringent regulatory intervention by governmental authorities.
In addition, the company operates a fleet of more than 350 commercial vehicles, primarily in the company's Water Treatment segment, which are highly regulated, including by the U.S. Department of Transportation ('DOT'). The DOT governs transportation matters including authorization to engage in motor carrier service, including the necessary permits to conduct the company's businesses, equipment operation, and safety.
The manufacture, packaging, labeling, advertising, promotion, distribution and sale of the company's agricultural, food, pharmaceutical, pesticide and health and nutrition products are subject to regulation by numerous national and local governmental agencies in the United States and other countries. The primary regulatory bodies in the United States are the Food and Drug Administration (the 'FDA'), the Environmental Protection Agency, the United States Department of Agriculture and the Federal Trade Commission, and the company is also subject to similar regulators in other countries.
Acquisitions
On March 8, 2024, the company acquired substantially all the assets of Industrial Research Corporation ('Industrial Research') under the terms of a purchase agreement with Industrial Research and its shareholders. Industrial Research was a distributor of water treatment chemicals and equipment for its customers in central to northern Louisiana, eastern Texas and southern Arkansas. The results of operations since the acquisition and the assets are included in the company's Water Treatment segment.
On October 31, 2023, the company acquired substantially all the assets of The Miami Products & Chemical Company ('Miami Products') under the terms of a purchase agreement with Miami Products and its shareholders. Miami Products was a bleach manufacturer and distributor serving customers primarily throughout Ohio and the surrounding region. The results of operations since the acquisition date and the assets are included in the company's Water Treatment segment.
On October 27, 2023, the company acquired substantially all the assets of Water Solutions Unlimited, Inc. ('Water Solutions') under the terms of a purchase agreement with Water Solutions and its shareholders. Water Solutions was a manufacturer and distributor of water treatment chemicals serving customers primarily throughout Indiana, Illinois and Michigan. The results of operations since the acquisition date and the assets are included in the company's Water Treatment segment.
On July 14, 2023, the company acquired substantially all the assets of EcoTech Enterprises, Inc. ('EcoTech') under the terms of a purchase agreement with EcoTech and its shareholders. EcoTech was a water treatment chemical distribution company operating primarily in Arkansas. The results of operations since the acquisition date and the assets are included in the company's Water Treatment segment.
Dispositions
In 2023, the company sold certain assets in its Industrial segment related to the company's consumer bleach packaging business.
History
Hawkins, Inc. was founded in 1938. The company was incorporated in Minnesota in 1955.