Corn Products International, Inc. (CPI) Westchester, Ill., said it agreed to acquireNational Starch, Bridgewater, N.J., fromAkzoNobel, a global coatings and specialty chemicals company, headquartered in The Netherlands.
Terms of the deal were not disclosed. Officials said the acquisition has been approved by the boards of directors of both Corn Products International and AkzoNobel. They expect to close the transaction in the third quarter of 2010, subject to regulatory approvals.
“The acquisition of National Starch represents an exceptional opportunity for our company and a significant step forward toward achieving our strategic goals,” said Ilene Gordon, CPI chairman, president and CEO. “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 $5 billion in revenues, “Gordon added. “The combined company will benefit from leading, innovative technology; enhanced geographic scale; a broader and deeper product portfolio; and access to new market segments.”
Officials said National Starch had 2009 revenues of $1.2 billion from sales of specialty starches to both local and multinational customers in the food, papermaking, consumer and industrial segments. It has 2,250 employees around the world and operates 11 plants in eight countries, including new geographies for Corn Products such as the United Kingdom, Germany, Australia, and New Zealand.
CPI is a leading worldwide producer of dextrose and a major regional producer of starches, sweeteners and other ingredients. It has 8,000 employees and operations in 13 countries at 28 plants, including wholly owned businesses, affiliates and alliances. In 2009, CPI reported net sales of $3.67 billion.
Gordon said National Starch is a leader in the development of specialty and modified starches – two of the ingredient solutions that CPI identified as important to its ongoing growth. National Starch’s ingredient solutions, such as texturants, blends and environmentally “green” solutions, will broaden Corn Products’ offerings to its global customers.
“This acquisition gives us access to new markets such as Europe, and improves our scale and capabilities in many of our existing global locations,” said Gordon. “We will be able to better serve our global customers with our enhanced geographic footprint and the addition of National Starch’s technology. Further, we expect significant production efficiencies and cost synergies that will make us more competitive around the world.”
“We are acquiring National Starch, not just because of its products and manufacturing assets, but also because of its experienced and dedicated people,” Gordon added. “They bring to Corn Products exceptional know-how in ingredient development, solutions and applications, along with proven marketing and customer service skills.”