Corn Products International, Inc. (NYSE:CPO), a leading global
provider of ingredient solutions for diversified industries,
announced today that it has entered into a definitive agreement to
acquire National Starch, a New Jersey-based global provider of
specialty starches, from AkzoNobel, the largest global coatings and
specialty chemicals company, headquartered in The Netherlands.
“The acquisition of National Starch represents an exceptional
opportunity for our Company and a significant step forward toward
achieving our strategic goals,” said Ilene Gordon, Chairman,
President and Chief Executive Officer of Corn Products
International. “The acquisition aligns with our strategic
priorities to grow our ingredient portfolio, increase our presence
in priority food processing segments, enter new markets, and
develop innovative solutions that better serve our customers.”
“Combining National Starch with Corn Products will create an
ingredient solutions leader with nearly $5 billion in revenues,
“Gordon added. “The combined company will benefit from leading,
innovative technology; enhanced geographic scale; a broader and
deeper product portfolio; and access to new market segments.”
National Starch is a recognized innovator in food ingredients
and specialty starches. The company’s technologies are supported by
a world-class research and development infrastructure and protected
by more than 800 patents and patents pending, which drive the
development of advanced specialty starches for the next generation
of food products. National Starch had 2009 revenues of $1.2 billion
from sales of specialty starches to both local and multinational
customers in the food, papermaking, consumer and industrial
segments. It has 2,250 employees around the world and operates 11
plants in eight countries, including new geographies for Corn
Products such as the United Kingdom, Germany, Australia, and New
Zealand.
National Starch is a leader in the development of specialty and
modified starches – two of the ingredient solutions that Corn
Products has identified as important to its ongoing growth.
National Starch’s ingredient solutions, such as texturants, blends
and environmentally “green” solutions, will broaden Corn Products’
offerings to its global customers.
“This acquisition gives us access to new markets such as Europe,
and improves our scale and capabilities in many of our existing
global locations,” said Gordon. “We will be able to better serve
our global customers with our enhanced geographic footprint and the
addition of National Starch’s technology. Further, we expect
significant production efficiencies and cost synergies that will
make us more competitive around the world.”
“We are acquiring National Starch, not just because of its
products and manufacturing assets, but also because of its
experienced and dedicated people,” Gordon added. “They bring to
Corn Products exceptional know-how in ingredient development,
solutions and applications, along with proven marketing and
customer service skills.”
“We are confident that this acquisition will create lasting,
long-term value for our shareholders,” Gordon said. The transaction
is expected to generate cost synergies of at least $50 million,
primarily from efficiencies in the areas of manufacturing,
procurement, logistics and general & administrative
functions.
“We expect to move quickly to integrate and attain synergy
savings,” Gordon concluded.
On a cash basis, the transaction is expected to be accretive by
the end of 2011.
The acquisition, which has been approved by the Boards of
Directors of both Corn Products International and AkzoNobel, is
expected to close in the third quarter of 2010, subject to
customary regulatory approvals.
The Company expects to finance the transaction through cash,
debt and new equity. Corn Products is committed to maintaining its
investment grade rating.
J.P. Morgan Securities Inc. acted as exclusive financial advisor
to Corn Products International.
CONFERENCE CALL
INFORMATION
Corn Products International will discuss this acquisition on a
conference call today at 9:30 a.m. Eastern Time (8:30 a.m. Central
Time) to be hosted by Ilene Gordon, Chairman, President and Chief
Executive Officer, and Cheryl Beebe, Chief Financial Officer. The
call will be broadcast in a real-time webcast that will consist of
the call and a visual presentation accessible through the Corn
Products International web site at www.cornproducts.com. A replay
of the webcast will be available at www.cornproducts.com.
Individuals without Internet access may listen to the live
conference call by dialing 719-325-4753. A replay of the audio call
will be available through Friday, July 2, by calling 719-457-0820
and using passcode 6350941.
About the Company
Corn Products International is one of the world's largest corn
refiners and a major supplier of high-quality food ingredients and
industrial products derived from the wet milling and processing of
corn and other starch-based materials. The Company, headquartered
in Westchester, Ill., is a leading worldwide producer of dextrose
and a major regional producer of starches, sweeteners and other
ingredients. It has 8,000 employees and operations in 13 countries
at 28 plants, including wholly owned businesses, affiliates and
alliances. In 2009, Corn Products International reported net sales
of $3.67 billion. For more information, visit
www.cornproducts.com.
Forward-Looking Statements
This news release contains or may contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. The Company intends these forward-looking
statements to be covered by the safe harbor provisions for such
statements. These statements include, among other things, any
predictions regarding the Company’s prospects or future financial
condition, earnings, revenues, expenses or other financial items,
any statements concerning the Company’s prospects or future
operations, including management’s plans or strategies and
objectives therefor, expectations regarding the proposed
acquisition, including synergies, time of closing, accretion and
credit ratings, and any assumptions, expectations or beliefs
underlying the foregoing. These statements can sometimes be
identified by the use of forward looking words such as “may,”
“should,” “will,” “anticipate,” “believe,” “plan,” “project,”
“estimate,” “expect,” “intend,” “continue,” “pro forma,” “forecast”
or other similar expressions or the negative thereof. All
statements other than statements of historical facts in this news
release or referred to in this news release are “forward-looking
statements.” These statements are based on current expectations,
but are subject to certain inherent risks and uncertainties, many
of which are difficult to predict and are beyond our control.
Although we believe our expectations reflected in these
forward-looking statements are based on reasonable assumptions,
stockholders are cautioned that no assurance can be given that our
expectations will prove correct. Actual results and developments
may differ materially from the expectations expressed in or implied
by these statements, based on various factors, including the
effects of the global economic recession and its impact on our
sales volumes and pricing of our products, our ability to collect
our receivables from customers and our ability to raise funds at
reasonable rates; fluctuations in worldwide markets for corn and
other commodities, and the associated risks of hedging against such
fluctuations; fluctuations in the markets and prices for our
co-products, particularly corn oil; fluctuations in aggregate
industry supply and market demand; the behavior of financial
markets, including foreign currency fluctuations and fluctuations
in interest and exchange rates; continued volatility and turmoil in
the capital markets; the commercial and consumer credit
environment; general political, economic, business, market and
weather conditions in the various geographic regions and countries
in which we manufacture and/or sell our products; future financial
performance of major industries which we serve, including, without
limitation, the food and beverage, pharmaceuticals, paper,
corrugated, textile and brewing industries; energy costs and
availability, freight and shipping costs, changes in regulatory
controls regarding quotas, tariffs, duties, taxes and income tax
rates; operating difficulties; boiler reliability; our ability to
effectively integrate acquired businesses; labor disputes; genetic
and biotechnology issues; changing consumption preferences and
trends; increased competitive and/or customer pressure in the
corn-refining industry; and the outbreak or continuation of serious
communicable disease or hostilities including acts of terrorism.
Factors relating to the proposed acquisition that could cause
actual results and developments to differ from expectations
include: required regulatory approvals may not be obtained in a
timely manner, if at all; the proposed acquisition may not be
consummated in a timely manner or at all; the anticipated benefits
of the proposed acquisition, including synergies, may not be
realized; the integration of National Starch’s operations with
those of Corn Products may be materially delayed or may be more
costly or difficult than expected, and we may be unable to maintain
our current credit ratings. Our forward-looking statements speak
only as of the date on which they are made and we do not undertake
any obligation to update any forward-looking statement to reflect
events or circumstances after the date of the statement as a result
of new information or future events or developments. If we do
update or correct one or more of these statements, investors and
others should not conclude that we will make additional updates or
corrections. For a further description of these and other risks,
see “Risk Factors” included in our Annual Report on Form 10-K for
the year ended December 31, 2009 and subsequent reports on Forms
10-Q or 8-K .This news release also may contain references to the
Company’s long term objectives and goals or targets with respect to
certain metrics. These objectives, goals and targets are used as a
motivational and management tool and are indicative of the
Company’s long term aspirations only, and they are not intended to
constitute, nor should they be interpreted as, an estimate,
projection, forecast or prediction of the Company’s future
performance.
Corn Products (NYSE:CPO)
Historical Stock Chart
From May 2024 to Jun 2024
Corn Products (NYSE:CPO)
Historical Stock Chart
From Jun 2023 to Jun 2024