Ingredion to acquire controlling stake in stevia sweeteners producer PureCircle

USA – Plant-based ingredient solutions provider, Ingredion has reached an agreement to acquire a controlling 75% stake in PureCircle, one of the leading producers and innovators of stevia sweeteners for the global food and beverage industries. 

The companies did not reveal the financial details of the proposed acquisition but said that the deal has been approved by the boards of both companies.

The transaction is expected 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.

The deal is expected to boost Ingredion’s investments in the sweeteners industry. Sugar reduction is one of Ingredion’s five specialties growth platforms that the company has committed to invest in its growth, of which stevia is a core product for the sugar reduction portfolio.

Ingredion said that it has followed the development of PureCircle for several years and believes that it is a fundamentally strong and attractive 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, the company said that PureCircle brings unrivalled innovation and manufacturing expertise related to stevia.

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Upon completion of the transaction, both companies are expected to build on these strengths while leveraging on Ingredion’s global go to market network and capabilities to drive growth synergies.

“PureCircle is a widely recognized innovator with a proven track record for producing great-tasting, plant-based stevia,” said Ingredion’s president and CEO, Jim Zallie.

“Ingredion’s successful and global go-to-market model combined with our formulation expertise will be highly complementary with PureCircle’s capabilities.

“We have tremendous respect for the business that PureCircle has built for nearly two decades and are excited to welcome them to the Ingredion family.

“We are ready to support this new phase of growth with stevia’s on-trend and sustainable solutions,” Zallie added.

PureCircle has significantly invested in advanced plant breeding as well as R&D and innovation, which has seen the company obtain the grant of over 214 stevia-related patents with more than 300 applied for patents pending.

The company has also made expansions and investments in new manufacturing technologies, including the latest expansion of its Malaysian stevia extract facility in 2017.

Upon completion of the proposed acquisition, Ingredion and PureCircle said that they will bring their customers key technologies that solve many complex formulation challenges faced by food and beverage developers today.

“We at PureCircle are glad to have found a strong partner in Ingredion who shares our mission of encouraging healthy diets around the world and being the preferred supplier of high-purity, great-tasting stevia ingredients for the global food and beverage industry”, said Peter Lai Hock Meng, CEO of PureCircle.

“This acquisition should excite the current and potential customers of both companies, as the combined companies will be able to serve our customers with better services, wider product range and extend deeper into the global, regional and local markets.”

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