Ingredient solutions provider Ingredion has completed the acquisition of US-based speciality ingredients supplier Penford.
“The integration is expected to generate annual cost synergies of at least $20m,” Ingredion claimed, “primarily from efficiencies in the areas of manufacturing, procurement, logistics and general and administrative functions. Excluding one-time costs, the transaction is expected to be $0.08 – $0.12 accretive to earnings on a per share basis in 2015.”
Penford will be incorporated into Ingredion’s North American business under the leadership of Ingredion vice president of global specialties, Jim Zallie. Tom Malkoski, president and chief executive officer of Penford, will remain at the company as a senior advisor on strategic projects.
Ingredion chairman and CEO Ilene Gordon said: “This is a great opportunity for Ingredion. Penford’s expertise in potato starch, non-starch texturisers (hydrocolloids) and green solutions expand our capabilities to address growing consumer trends. Plus, their complementary portfolio of higher-value specialty ingredients will take us into new and profitable sectors. We are looking forward to a bright future together.
“We will begin the integration immediately to capture synergies, provide a broader offering of higher-value specialty products to our customers around the world and continue to deliver shareholder value.”
© FoodBev Media Ltd 2024