FMC to Acquire Hydrocolloid Biz from ISP

May 20/Philadelphia/Prepared Foods Magazine -– FMC Corporation (FMC) announced the company has entered into an agreement to acquire the hydrocolloids ingredients business of International Specialty Products (ISP). According to an FMC press release, the move will extend FMC’s leadership in hydrocolloids and enhance service to global customers in food, pharmaceutical and specialty industries. ISP’s hydrocolloid ingredients business had revenues of approximately $80 million in 2007.

Under the agreement, FMC will acquire ISP’s alginates and food blends business (other than ISP’s Germinal blending business based in Brazil), including ISP’s Girvan, Scotland, manufacturing facility and employees associated with the business. The companies expect to close the transaction following satisfaction of customary closing conditions. Alginates are extracted from seaweed and are one of the most versatile biopolymers used in a wide range of food, pharmaceutical and specialty applications. Food blends are comprised of specialty hydrocolloids that provide unique functionality in a variety of food uses. The newly acquired business will be integrated into FMC Specialty Chemicals Group’s BioPolymer Division. “The integrated business will enable FMC to offer customers a broader range of alginates and functional system blends and improve our geographic coverage in key markets.” said Ted Butz, vice president and general manager, FMC Specialty Chemicals Group. “This move will further strengthen our global cost competitiveness by increasing our capabilities to source raw materials, drive production efficiencies and deliver improved supply chain economics.”

From the May 27, 2008, Prepared Foods e-Flash