March 11, 2015, Westchester, Ill. – Ingredion Inc., a leading global provider of ingredient solutions to diversified industries, announced today that it has successfully completed the acquisition of Penford Corp., 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.”
The integration is expected to generate annual cost synergies of at least $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 $0.08–$0.12 accretive to earnings on a per share basis in 2015.
Penford common stock has ceased trading on the NASDAQ Stock Market. Penford 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. Tom Malkoski, Penford’s president and chief executive officer, will join Ingredion as a senior adviser on strategic projects to promote specialties growth. Reporting to Ingredion CEO Gordon, Malkoski will also support the integration of Penford.
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