Ingredion Inc. on Oct. 15 announced a deal to acquire ingredients supplier Penford Corp., Centennial, Colo., for approximately $340 million in cash.
Publicly held Penford makes texture solutions for food, including customized combinations of texture ingredients with a particular emphasis on potato starches. Early this year, it bought Gum Technology Corp., which brought it gum-based texture solutions.
Ingredion, based in Westchester, Ill., also is heavily into texture ingredients, having acquired National Starch in 2010. Ingredion, formerly Corn Products International, also makes sweeteners and other, mostly functional, ingredients.
The acquisition has been approved by the boards of directors of both companies. It is subject to approval by Penford’s shareholders and regulators as well as to other customary closing conditions and could close as early as the end of the year.
“This acquisition is another step in executing our strategic blueprint for growth," said Ilene Gordon, Ingredion chairman and CEO. "It expands our higher-value specialty portfolio, establishes manufacturing of specialty potato starches in North America, and builds our presence in nature-based hydrocolloid ingredients.
“Penford’s range of products addresses growing consumer trends, including nutrition, gluten-free, food textures, and sustainable green solutions," she continued. "The added capabilities will further enhance our efforts to deliver new, value-added solutions to the marketplace.”
Penford had net sales of $467 million in fiscal year 2013, 445 employees and six plants in the U.S., all of which make specialty starches.