Penford Corporation (NASDAQ: PENX), Centennial, Colo., said it entered into a definitive agreement to acquire Gum Technology, a privately held gum and hydrocolloids distribution, blending and services company.
Gum Technology, based in Tucson, Ariz., serves primarily the food and beverage industries. Officials expect to complete the deal in late March, subject to closing conditions. Upon completion, they say Gum Technology would become a business unit of Penford.
“Gum Technology’s product line and reputation for outstanding customer service will broaden Penford’s portfolio of functional and specialty ingredient systems for existing customers and open new segments to the company,” said Tom Malkoski, Penford Corporation CEO. “We see opportunities in food and industrial bio-products for high value, specialized products from the combination of our product lines and customer relationships.”
“This acquisition fits well with our strategy of accelerating the pace of growth of the company’s specialty businesses,” Malkoski added. “Our food segment continues to expand, largely from new products and ingredient systems, and the industrial bio-products business is showing meaningful progress through innovative products and a broader range of applications. We believe the addition of Gum Technology will contribute to both of these important business segments.”
Gum Technology markets a range of gums and other hydrocolloids throughout North America and Asia. The company specializes in developing and producing customized stabilizers to meet customers’ product formulation needs. Gum Technology’s products are found in a wide variety of food products including beverages, sauces, bakery, frozen foods, jams and fruit fillings, spice blends, dairy applications, and nutraceuticals.
“We are pleased to join Penford and anticipate exciting opportunities to combine our companies’ expertise in product lines and broad geographic reach,” said Allen Freed, CEO of Gum Technology. “With Penford’s resources and product knowledge, we can immediately begin advancing Gum Tech’s GumPlete™ line of gum-starch blends.”
Penford Corporation develops, manufactures and markets specialty ingredient systems for a variety of food and industrial applications. Penford has seven U.S. manufacturing and/or research locations. Besides its Tucson headquarters, Gum Technology has warehouses in Chino, Calif.; Newark and Paterson, N.J.; and in Hammond and Mooresville, Ind.