Ingredion completes Penford acquisition

16 Mar 2015

Ingredion has successfully completed the acquisition of Penford Corporation. “This is a great opportunity for Ingredion,” said Ilene Gordon, Ingredion chairman and CEO. “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 […]

Ingredion completes Penford acquisition

http://www.dreamstime.com/stock-photography-merger-companies-merging-image24692062Ingredion has successfully completed the acquisition of Penford Corporation.

“This is a great opportunity for Ingredion,” said Ilene Gordon, Ingredion chairman and CEO. “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.”

“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 $20 million, primarily from efficiencies in the areas of manufacturing, procurement, logistics and general and administrative functions.

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 advisor on strategic projects to promote specialties growth.  Reporting to Ingredion CEO Gordon, Malkoski will also support the integration of Penford.