Ingredion Incorporated (NYSE: INGR), a leading global provider of
ingredient solutions to diversified industries, today announced the
completion of its acquisition of PureCircle Limited, the world’s
leading producer and innovator of plant-based stevia sweeteners and
flavors for the food and beverage industry. PureCircle brings
global innovation and manufacturing expertise, enabling Ingredion
to leverage its global go-to-market model, formulation capabilities
and broad ingredient portfolio.
“This is a significant step forward as we advance our Driving
Growth Roadmap and further align our sugar reduction and specialty
sweetener platform to the megatrends in the food and beverage
industry,” said Jim Zallie, Ingredion’s president and chief
executive officer. “PureCircle provides substantial growth
potential that is aligned with our strategy to create long-term
shareholder value. We have always had tremendous respect for the
PureCircle team and the business they have built over the last two
decades. We are excited to welcome them to the Ingredion family.
Most importantly, our team stands ready to drive new growth
opportunities that are fully aligned with
consumers’ preferences for plant-based alternatives that
are sustainable, good for the environment and taste great.”
Two leadership team decisions are also being announced to
support this integration, effective July 1, 2020.
- Tony DeLio will serve as chief executive officer of
PureCircle in addition to his current responsibilities as the chief
innovation officer of Ingredion.
- SukGu Kim will become the chief financial officer of
PureCircle. Most recently, Kim was the finance director for the
Company’s largest region in Asia-Pacific.
“PureCircle is a renowned innovator with a proven track record
for producing great-tasting, naturally based stevia and derivatives
of stevia. And, they have pioneered the development of novel
varieties of stevia that are both better tasting and higher
yielding,” said DeLio. “Our go-to-market model and formulation
expertise will be highly complementary when combined with their
leading position and innovation capabilities. Through their
industry leadership, PureCircle has created outstanding customer
relationships, which we look forward to building upon in the
future.”
PureCircle is wholly owned by Ingredion’s acquisition
subsidiary, which is in turn 75%-owned by Ingredion and 25%-owned
by former PureCircle shareholders. Additional information about the
acquisition is presented in Ingredion’s filings with the Securities
and Exchange Commission.
Citi acted as financial advisor to Ingredion and Hogan Lovells
acted as its legal counsel.
ABOUT PURECIRCLE
Founded in 2002, PureCircle combines advanced R&D with full
vertical integration from farm to high-quality, great-tasting
innovative stevia sweeteners. PureCircle collaborates with the
farmers who grow the stevia plants and with the food and beverage
companies, which seek to improve their low- and no-calorie
formulations using a sweetener from plants. To meet growing demand
for stevia sweeteners, PureCircle has ramped up its supply
capability. It completed expansion of its Malaysian stevia extract
facility in March 2017, increasing its capacity to rapidly supply
the newer and great-tasting specialty stevia sweeteners and to
provide ever-increasing value to its customers. PureCircle has
offices around the world with global headquarters in Chicago,
Illinois. For more information, visit: www.purecircle.com
ABOUT THE COMPANY Ingredion Incorporated (NYSE:
INGR) headquartered in the suburbs of Chicago, is a leading global
ingredient solutions provider serving customers in more than 120
countries. With 2019 annual net sales of more than $6 billion, the
company turns grains, fruits, vegetables and other plant-based
materials into value-added ingredient solutions for the food,
beverage, animal nutrition, brewing and industrial markets. With
Ingredion Idea Labs® innovation centers located around the
world and more than 11,000 employees, the Company co-creates with
customers and fulfills its purpose of bringing the potential of
people, nature and technology together to make life better. Visit
ingredion.com for more information and the latest Company news.
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.
Forward-looking statements include, among others, any statements
concerning the Company’s expectations regarding its future stevia
sales 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," "will," "should,"
"anticipate," "assume," "believe," "plan," "project," "estimate,"
"expect," "intend," "continue," "pro forma," "forecast," "outlook,"
"propels," "opportunities," "potential," "provisional," 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 circumstances or
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, investors 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 our forward looking
statements as a result of the following risks and uncertainties,
among others: changing consumption preferences and perceptions,
including those relating to high fructose corn syrup; the effects
of global economic conditions and the general political, economic,
business, and market conditions that affect customers and consumers
in the various geographic regions and countries in which we buy our
raw materials or manufacture or sell our products, including,
particularly, economic, currency and political conditions in South
America and economic and political conditions in Europe, and the
impact these factors may have on our sales volumes, the pricing of
our products, our access to credit markets and our ability to
collect our receivables from customers; adverse changes in
investment returns earned on our pension assets; future financial
performance of major industries which we serve and from which we
derive a significant portion of our sales, including the food,
beverage, animal nutrition, and brewing industries; the uncertainty
of acceptance of products developed through genetic modification
and biotechnology; our ability to develop or acquire new products
and services at rates or of qualities sufficient to meet
expectations; changes in U.S. and foreign government policy, laws
or regulations and costs of legal compliance; increased competitive
and/or customer pressure in the corn-refining industry and related
industries, including with respect to the markets and prices for
our primary products and our co-products, particularly corn oil;
the availability of raw materials, including potato starch,
tapioca, gum Arabic and the specific varieties of corn upon which
some of our products are based, and our ability to pass on
potential increases in the cost of corn or other raw materials to
customers; raw material and energy costs and availability; our
ability to contain costs, achieve budgets and to realize expected
synergies, including with respect to our ability to complete
planned maintenance and investment projects on time and on budget,
and to achieve expected savings under our Cost Smart program as
well as with respect to freight and shipping costs; the impact of
financial and capital markets on our borrowing costs, including as
a result of foreign currency fluctuations, fluctuations in interest
and exchange rates and market volatility and the associated risks
of hedging against such fluctuations; the potential effects of
climate change; our ability to successfully identify and complete
acquisitions or strategic alliances on favorable terms as well as
our ability to successfully integrate acquired businesses or
implement and maintain strategic alliances and achieve anticipated
synergies with respect to all of the foregoing; operating
difficulties at our manufacturing plants or with respect to boiler
reliability; risks related to product safety and quality and
compliance with environmental, health and safety, and food safety
laws and regulations; economic, political and other risks inherent
in operating in foreign countries with foreign currencies and
shipping products between countries, including with respect to
tariffs, quotas and duties; interruptions, security breaches or
failures that might affect our information technology systems,
processes and sites; our ability to maintain satisfactory labor
relations; the impact that weather, natural disasters, war or
similar acts of hostility, acts and threats of terrorism, the
outbreak or continuation of pandemics such as COVID 19 and other
significant events could have on our business; the potential
recognition of impairment charges on goodwill or long lived assets;
changes in our tax rates or exposure to additional income tax
liabilities; and our ability to raise funds at reasonable rates to
grow and expand our operations.
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, 2019 and our subsequent reports on Form
10-Q and Form 8-K.
CONTACTS:Investors: Tiffany
Willis, 708-551-2592Media: Becca Hary,
708-551-2602
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