Ingredion completes acquisition of Penford Corporation

Ingredion Incorporated, a provider of ingredient solutions to diversified industries, announced that it has successfully completed the acquisition of Penford Corporation, a U.S.-based leader in specialty ingredients for food and non-food applications.

“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.

“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,” Gordon added.

The integration is expected to generate annual cost synergies of at least USD 20 million, 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 USD 0.08 – USD 0.12 accretive to earnings on a per share basis in 2015.

Penford common stock has ceased trading on the NASDAQ Stock Market. As a manufacturer of specialty, nature-based ingredients for food and industrial applications, Penford offers a product portfolio that provides expanded and complementary products and know-how to Ingredion's growing line of on-trend solutions.

Gum, gum blends and texture solutions for food applications including potato, tapioca, rice and corn based starches, allow Ingredion to offer customers convenient and cost-effective solutions as well as added functionality.