Ingredion to Acquire TIC Gums
Move expands Ingredion's customer base, specialty portfolio and texture expertise
TIC Gums enables food innovation by 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 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. Excluding one-time costs, the transaction is expected to be $0.04 - $0.05 accretive to adjusted EPS in the first year.
Together, Ingredion and TIC Gums will offer the widest 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," explained, Ilene Gordon, Ingredion chairman and CEO.
"Combined with Ingredion's global presence and portfolio of starch-based texturizers, there's even more opportunity for robust growth and expansion," Gordon added.
"TIC Gums' and Ingredion's strengths complement each other perfectly. 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 be 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. 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," said TIC Gums President Gregory Andon.
TIC 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.