Westchester, Ill.-based Ingredion Inc., a leading global supplier of ingredient solutions, signed off on a $400-million stock purchase agreement Tuesday to acquire all of the outstanding shares of TIC Gums Inc., a privately-held U.S. company that provides advanced texture systems to the food and beverage industry.
The acquisition has been approved by Ingredion’s board of directors and the stockholders of TIC Gums. It is expected to close by the end of the year, subject to customary closing conditions. Ingredion expects to fund the $400 million-cash transaction with available cash and short-term credit.
TIC Gums’ expertise with gum-based texturizers will complement its expertise in starch technology, Ingredion says, “opening the door to new texture solutions for today’s food formulations.” It operates two production facilities, one in the United States and one in China, and state-of-the-art R&D labs in both countries. The company conducts business worldwide and employs over 200 people.
“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,” explains Ilene Gordon, Ingredion chairman and ceo. “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.
“Combined with Ingredion’s global presence and portfolio of starch-based texturizers, there’s even more opportunity for robust growth and expansion,” she adds.
According to an Ingredion press release, TIC Gums’ strength lies in combining several types of texturizers into systems that work synergistically in foods and beverages. The company has access to a variety of agriculturally derived ingredients, such as gum acacia and guar, and a deep understanding of their performance. These nature-based ingredients form the foundation for innovative texture systems and allow for clean-label reformulation, the company says.
“TIC Gums’ and Ingredion’s strengths complement each other perfectly,” asserts TIC Gums President Gregory Andon. “We share a vision around the importance of texture and stabilization in food and beverage formulation. By coming together, we will truly be able to focus on the correct technical solutions for our customers whether they are starch, gum or systems containing both.
“Ingredion’s global footprint will enable us to achieve our geographical expansion goals much faster than we otherwise could on our own,” he continues. “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.”