Ingredion has agreed to acquire a controlling 75% stake in PureCircle, one of the world’s largest suppliers of the stevia sweetener, for an undisclosed sum.
Founded in 2001, PureCircle is one of the market leaders in the stevia sector, and has developed a number of patented stevia varieties, including the proprietary StarLeaf stevia plant.
The proposed purchase has been approved by the boards of both companies, and the transaction is expected to close during the second half of 2020.
The transaction is still subject to approval by PureCircle’s shareholders and the relevant regulatory authorities. Both companies will remain as independent entities until the transaction has been completed.
Once the purchase has been completed, PureCircle will be able to leverage Ingredion’s global market network, and a joint statement released by the companies claimed that PureCircle’s leadership in stevia combined with Ingredion’s portfolio of texturisers and ingredients will provide a “full suite of complementary ingredients and integrated solutions to solve the sugar reduction challenges of food and beverage companies.”
Jim Zallie, president and chief executive officer of Ingredion, said: “PureCircle is a widely recognized innovator with a proven track record for producing great-tasting, plant-based stevia. Ingredion’s successful and global go-to-market model combined with our formulation expertise will be highly complementary with PureCircle’s capabilities.
“We have tremendous respect for the business that PureCircle has built for nearly two decades and are excited to welcome them to the Ingredion family. We are ready to support this new phase of growth with stevia’s on-trend and sustainable solutions.”
Peter Lai Hock Meng was appointed as the CEO of PureCircle earlier this year. He added: “We at PureCircle are glad to have found a strong partner in Ingredion who shares our mission of encouraging healthy diets around the world and being the preferred supplier of high-purity, great-tasting stevia ingredients for the global food and beverage industry.
“This acquisition should excite the current and potential customers of both companies, as the combined companies will be able to serve our customers with better services, wider product range and extend deeper into the global, regional and local markets.”
© FoodBev Media Ltd 2020