Ingredion completes Penford acquisition

INGREDION Incorporated (NYSE: INGR) has completed its acquisition of Penford Corporation, a leading supplier of specialty ingredients for food and non-food applications in the United States.

In an announcement made on 11 March 2015, Ingredion chairman and CEO Ilene Gordon said integration will take place immediately.

“This is a great opportunity for Ingredion.  Penford’s expertise in potato starch, non-starch texturizers (hydrocolloids) and green solutions expands 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,” said Ilene Gordon, Ingredion chairman and CEO. 

The integration will generate annual cost synergies of at least $20 million, from efficiencies in 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.

Meanwhile Penford common stock is no longer trading on the NASDAQ Stock Market. The company will be incorporated into Ingredion’s $3.1 billion North American business, led by Jim Zallie, Ingredion executive vice president of global specialties and president of North America and EMEA.

Penford president and CEO, Tom Malkoski will take on a new role with Ingredion as senior advisor on strategic projects to promote specialties growth. He will also assist in the integration.

A leading provider of nature-based sweeteners, starches and nutrition ingredients, Ingredion first announced it would acquire Penford in late 2014, for $340 million.