Corn Products To Buy National Starch For $1.3bn
Corn Products International, a global provider of ingredients for various industries, has signed a definitive agreement to acquire National Starch from AkzoNobel, a global coatings and specialty chemicals company, based in The Netherlands.
The acquisition is expected to close in the third quarter of 2010, subject to customary regulatory approvals.
National Starch, a New Jersey-based global provider of specialty starches, operates 11 plants in eight countries, including the UK, Germany, Australia, and New Zealand.
Corn Products said that specialty and modified starches of National Starch are two of the ingredient s that it has recognized as important to its ongoing growth, and believes that National Starch’s ingredients, such as texturants, blends and environmentally 'green' solutions, will broaden its offerings to its global customers.
Ilene Gordon, chairman, president and CEO of Corn Products International, said: The acquisition of National Starch represents an exceptional opportunity for our company and a significant step forward toward achieving our strategic goals.
The acquisition aligns with our strategic priorities to grow our ingredient portfolio, increase our presence in priority food processing segments, enter new markets, and develop innovative solutions that better serve our customers. Combining National Starch with Corn Products will create an ingredient solutions leader with nearly $5bn in revenues.
The combined company will benefit from leading, innovative technology; enhanced geographic scale; a broader and deeper product portfolio; and access to new market segments. This acquisition gives us access to new markets such as Europe, and improves our scale and capabilities in many of our existing global locations.
Mr Gordon added: The transaction is expected to generate cost synergies of at least $50m, primarily from efficiencies in the areas of manufacturing, procurement, logistics and general & administrative functions.
On a cash basis, the transaction is expected to be accretive by the end of 2011. The company expects to finance the transaction through cash, debt and new equity.
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