Corn Products International to Acquire SPI Polyols Assets
Posted on: Thursday, 11 January 2007, 15:00 CST
Corn Products International has entered into an agreement for the acquisition of the food business of SPI Polyols, a subsidiary of ABF North America Holdings, and the shares of an SPI unit that holds the remaining 50% of Getec Guanabara Quimica Industrial in Brazil. Financial terms of the deal have not been disclosed.
The combined businesses are expected to have annual sales of nearly $100 million, and are expected to be accretive to Corn Products International's earnings per share in the first year.
"This acquisition will strengthen our sweeteners platform and reinforce our Pathway strategy to expand our value-added, specialty product portfolio and become a broader-based ingredients company," said Sam Scott, chairman, president and CEO of Corn Products International. "The acquisition also would make us a leading producer of polyols in Latin America with facilities in Brazil, Mexico and Colombia, and would allow us to enter the US and Canadian markets primarily as a specialty polyols supplier."
The food business of SPI Polyols produces and sells specialty polyols for the food, beverage, confectionary, industrial, personal and oral care, and nutritional supplement markets. Polyols are sugar-free, reduced calorie sweeteners primarily derived from starch.
Getec is a major Brazilian producer of polyols for the personal care, food, candy and confectionary, and pharmaceutical markets. In September 2006, Corn Products International increased its equity ownership in Getec to 50% from 20%.
The proposed transaction, which has been approved by the board of directors at Illinois-based Corn Products International, is subject to customary closing conditions. Closing is anticipated in the first quarter of 2007.
The pharmaceutical business of SPI is not included in the transaction and will continue to be operated by SPI.
Source: Datamonitor
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