Ingredion has agreed to acquire texture company TIC Gums, which provides a number of advanced texture systems to the food and beverage industry, for $400 million.
TIC Gums’ expertise with gum-based texturisers will complement Ingredion’s expertise in starch technology, creating opportunities for new texture solutions for today’s food formulations, said Illinois-based Ingredion.
TIC Gums enables food innovation by combining several types of texturisers into systems that work synergistically in foods and beverages. The company has access to a variety of agriculturally derived ingredients, such as gum acacia and guar, as well as expertise in their performance.
TIC operates two production facilities, one in the US and one in China, as well as R&D labs in both countries.
Ingredion expects to fund the $400 million cash transaction with available cash and short-term credit. Excluding one-time costs, the transaction is expected to be $0.04 – $0.05 accretive to adjusted EPS in the first year.
Ilene Gordon, Ingredion chairman and CEO, said: “As a leader in texture systems for decades, TIC Gums has grown significantly over the past several years through its deep R&D expertise and a differentiated and focused approach to the customer experience. The team has an excellent track record in developing and delivering proprietary, customised systems.
“This acquisition propels us into a new era of on-trend texture development with even more solutions for organic and clean-label demands.
“Combined with Ingredion’s global presence and portfolio of starch-based texturizers, there’s even more opportunity for robust growth and expansion.”
And TIC Gums president Gregory Andon added: “TIC Gums’ and Ingredion’s strengths complement each other perfectly. We share a vision around the importance of texture and stabilisation in food and beverage formulation. By coming together, we will truly be able to focus on the correct technical solutions for our customers whether they be starch, gum or systems containing both.
“Ingredion’s global footprint will enable us to achieve our geographical expansion goals much faster than we otherwise could on our own. We believe our business model strength in clean-label formulation with the most dynamic players in the food and beverage space has significant untapped potential on the global stage.”
© FoodBev Media Ltd 2024