PURAC absorbs AVEBE subsidiary

Related tags Lactic acid Acid

Dutch food ingredients and confectionery multinational CSM
continues its strategy to expand worldwide activities in the food
and pharmaceutical markets with the recent announcement that it has
completed the acquisition of the gluconic acid derivatives business
of AVEBE subsidiary, Glucona.

The acquisition concerns Glucona's​ activities in high quality gluconic acid derivatives which will be merged with the CSM Biochemicals division, otherwise known as PURAC. The acquisition covers the majority of Glucona's operations but does not include the acquisition of specialty starches (excipients).

Glucona have a strong market position in gluconic acid derivatives and have production facilities in Ter Apelkanaal (the Netherlands) and Janesville (Wisconsin, USA). PURAC is a market leader in lactic acid and lactates, with production sites in Gorinchem (the Netherlands), Montmeló (Spain), Blair (Nebraska, USA) and Campos (Brazil).

According to CSM, the Glucona business represents an important addition to PURAC's portfolio. Like lactic acid, gluconic acid is an organic acid produced by fermentation. With gluconic acid derivatives, PURAC hopes to enhance its product range. PURAC lactic acid and lactates are applied in the food and pharmaceutical industries as a food preservative, mineral enricher, flavouring agent or pH regulator. The gluconic acid derivatives are mainly used for calcium and mineral enrichment in food and pharmaceutical products.

CSM maintains that the integration of the gluconic acid derivative activities in PURAC will create synergy opportunities, enabling PURAC​ to offer a more complete product range for new and existing customers.

Terms of the agreement were not disclosed.

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