Corn Products International has completed its acquisition of National Starch, the specialty starches business of AkzoNobel, the company said on Friday.
In June, Corn Products International agreed to buy National Starch, a wholly owned subsidiary of Dutch specialty chemicals and coatings company AkzoNobel, for $1.3bn. There had been uncertainty about the future of National Starch since 2007 when AkzoNobel acquired its parent company ICI for $8bn to boost its presence in the fast-growing coatings market. But specialty starches were not a core part of the business and an eventual sell-off was anticipated.
The Federal Trade Commission (FTC) gave its go-ahead to the deal in August, signaling that both the FTC and the Department of Justice Antitrust Division had determined not to take any enforcement action during the antitrust waiting period.
Commenting on today’s completion of the deal, chairman, president and CEO of Corn Products International Ilene Gordon said in a statement: “This is an important step forward for both Corn Products and National Starch…Today, we go to market with a broader portfolio of products, enhanced geographic reach, and the ability to partner with our customers on customized and innovative solutions. This makes Corn Products International a stronger, more diversified player in the ingredient arena.”
For Corn Products, the acquisition provides it with a new presence in markets in Europe and Australasia, as well as access to new technologies, and improved scale and capabilities in markets where it already has a presence.
National Starch already has strong business ties in Asia and Europe, and Corn Products’ CEO Ilene Gordon told FoodNavigator-USA.com in July that the acquisition fits well with the company’s corporate strategy to grow organically and geographically.
AkzoNobel CEO Hans Wijers said: "I'm pleased that we have secured a highly respected new owner for the business, which now enables us to put more energy and focus into our growth strategy.”
The combined company has 37 manufacturing facilities in 15 countries, sales offices in 29 countries, and employs about 10,000 people, Corn Products said.
Gordon added: “National Starch…has a strong track record of developing new, innovative ingredients, and its skilled, experienced employees share Corn Products’ goals and values.
“…As we integrate these two historic companies, we are committed to bringing together the best of what each has to offer in order to build the finest ingredient solutions provider in our industry.”