Ingredion and PureCircle have reached an agreement on the terms for Ingredion to acquire a controlling 75% stake in PureCircle, a producer of stevia sweeteners for the global food and beverage industries.
The proposed acquisition has been approved by the boards of both companies. The companies expect the transaction to close during the second half of 2020, subject to approval by PureCircle’s shareholders and receipt of the required regulatory approvals. Until then, Ingredion and PureCircle will remain separate, independent companies with separate product portfolios and go-to-market teams.
Innovation and manufacturing expertise
Ingredion has followed the development of PureCircle for several years and believes that it is a fundamentally attractive and robust business that will be a great fit with Ingredion’s long-term strategy, given PureCircle’s leadership position in this space. Beyond its leadership in the market, PureCircle brings innovation and manufacturing expertise related to stevia. Upon completion, both companies will be able to build on these strengths.
Growth synergies
PureCircle will be able to leverage Ingredion’s global go-to-market network, as well as its formulation expertise and broad product portfolio, which will drive growth synergies, as well as significant savings for both companies.
“PureCircle is a widely recognised innovator with a proven track record for producing great-tasting, plant-based stevia. Ingredion’s successful and global go-to-market model combined with our formulation expertise will be highly complementary with PureCircle’s capabilities,” says Ingredion’s president and chief executive officer Jim Zallie.
