Penford, known in the US as a leading supplier of specialty food ingredients developed by top minds in carbohydrate chemistry and for their wide range of chemically modified, specialty starch products consumed by the textile/paper sectors, recently reported entry into an agreement to acquire domestic modified starch/starch-blend producer Carolina Starches.
CEO of PENX, Tom Malkoski, outlined the acquisition a bit, explaining that the purchase would encompass company interests, as well as certain assets of the business currently being operated by Carolina Starches, LLC and Keystone Starches, LLC. Malkoski underscored the supply chain logistics and operational efficiencies this would create for PENX, paying special attention to the fact that this acquisition would fuse two of the top specialty starch elements in the marketplace, giving Penford an extremely strong position as they move forward with their specialty industrial and food ingredient segments (Penford Products Co. and Penford Food Ingredients).
Indeed, the entire network will open up substantially in areas of customer service and technical support to key clients, while research and development of new and better products will be amply boosted as well. The acquisition is expected to be accretive to first year results and will provide the basis for future economic growth, with closing merely subject to typical conditions/terms and projected for this December.
CEO of Carolina Starches, Ben Cheatham, pointed to the roughly $25M yearly revenue of the business and synergistic sourcing in domestic potato/corn starches, as well as Asian tapioca and European potato starch inputs, all of which are processed at facilities in North Charleston, SC and Berwick, PA. This profile complements PENX’s own strong core competencies and infrastructural architecture in potato, tapioca, corn and rice starches, adding significant throughput to the Company’s five existing processing/manufacturing/research sites.
This move will really shore up domestic operations and the overall position of the resulting business as a whole in North American markets. It will also give the Company an able footing in international markets, opening functional gateways to external markets and really contributing to maximized growth for the business model.
For more information on the acquisition and to stay up to date on the latest news, please visit the Penford Corp. website at www.Penx.com
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