Tom Malkoski, CEO for Penford Corporation, said: “This acquisition combines two leading specialty starch businesses and will support growth plans for our specialty industrial and food businesses. With the addition of Carolina Starches, we expect to realise benefits in supply chain and operations activities as well as business growth by enhancing our capabilities in providing superior products, customer service and technical support to our customers.”
Carolina Starches produces and sells modified starches and starch blends domestically and in several export markets. This business currently generates approximately $25m in annual revenue. The company sources domestic potato and corn starches, European potato starch and Asian tapioca starch for processing.
This acquisition is expected to be accretive within the first year and to have significant additional economic benefits in subsequent years. Closing is subject to certain conditions and is expected to occur in December.
Source: Penford Corporation
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