Ingredion Inc. announced has entered into a stock purchase agreement to acquire all of the outstanding shares of TIC Gums Inc. for approximately $400 million in cash. The deal, expected to close by the end of the year, expands Ingredion’s global customer base, specialty portfolio and texture expertise.
TIC Gums’ expertise with gum-based texturizers complements Ingredion’s expertise in starch technology, opening the door to new texture solutions for today’s food formulations. The company has access to a variety of agriculturally derived ingredients, such as gum acacia and guar, and a deep understanding of their performance. The nature-based ingredients form the foundation for innovative texture systems and allow for clean-label reformulation.
Together, Ingredion and TIC Gums will offer a wide range of texture capabilities, superior formulation expertise and rapid response to customer needs. The acquisition will expand Ingredion’s higher-value specialty portfolio and customer base in the fast-growing segment of small-to-medium-sized food and beverage companies that are driving industry innovation.
“As a leader in texture systems for decades, TIC Gums has grown significantly over the past several years through its deep R&D expertise and a differentiated and focused approach to the customer experience. The team has an excellent track record in developing and delivering proprietary, customized systems. This acquisition propels us into a new era of on-trend texture development with even more solutions for organic and clean-label demands," said Ingredion Chairman and CEO Ilene Gordon.
“Combined with Ingredion’s global presence and portfolio of starch-based texturizers, there’s even more opportunity for robust growth and expansion," Gordon added.
Commenting on the deal, TIC Gums President Gregory Andon said: “Ingredion’s global footprint will enable us to achieve our geographical expansion goals much faster than we otherwise could on our own. We believe our business model strength in clean-label formulation with the most dynamic players in the food and beverage space has significant untapped potential on the global stage."
For Ingredion, this deal is another step in the company’s growth strategy and affirms its position as a leading global ingredient solutions provider and bolsters its position as a provider of advanced texture systems to the food and beverage industry.
In 2015, Ingredion paid $340 million to acquire Colorado-based Penford Corp., a supplier of texture solutions for food, including customized combinations of texture ingredients with a particular emphasis on specialty potato starches. The deal helped build Ingredion’s presence in nature-based hydrocolloid ingredients, and provided a portfolio that addressed growing consumer trends, including nutrition, gluten-free, food textures and sustainable green solutions. That same year, Ingredion completed its $100-million acquisition of Kerr Concentrates, privately held producer of natural fruit and vegetable concentrates, purees and essences.
In August 2016, Ingredion entered into a definitive agreement to acquire the rice starch and rice flour business from Sun Flour Industry Co, Ltd. based in Banglen, Thailand. In November 2016, the company completed the acquisition of Shandong Huanong Specialty Corn Development Co., Ltd. in China.
In November 2013, Ingredion celebrated the expansion of its global R&D facility in Bridgewater, New Jersey, which included three new labs to focus on the development of sweeteners.