Ingredion to buy fruit and vegetable concentrates maker Kerr Concentrates in $100m deal
Based in Salem, Oregon, Kerr operates two production facilities making fruit and vegetable concentrates, purees and essences that can be used to enhance the nutrition, texture, flavor and appearance of a wide variety of products from smoothies, juices, dairy products and baked goods to soups and dressings.
"Kerr is a profitable company with an exciting portfolio of value-added ingredients that will broaden our current line of wholesome, clean-label solutions," said Ingredion CEO Ilene Gordon.
"Kerr transforms fruits and vegetables into natural ingredients that resonate with consumers and are increasingly in demand by customers… This extends our clean-label offerings beyond ingredient solutions made from corn, tapioca and potato, and we continue to look for acquisition opportunities in this space.”
Westchester, Illinois-based Ingredion, which is best known for its starches and sweeteners, acquired National Starch in 2010 in a $1.3bn deal and gums and starches maker Penford in a $340m deal in March 2015.
Gordon said that further bolt-on acquisitions would continue this diversification process at Ingredion, which changed its name from Corn Products International in 2012, and has been steadily broadening its portfolio ever since, adding stevia ingredients, and recently moving into pulse flours, protein and bran ingredients via a deal with Alliance Grain Traders.
The Kerr deal is expected to close within 30 business days, said Ingredion.
