"We are pleased to announce our joint venture with Grupo Arcor, a leader and pioneer in the food industry,” said Jorge Elías, president of Ingredion’s South America region.
“We share similar values and are passionate about creating a world-class experience and offering ingredient solutions that deliver value for our customers. We look forward to combining Ingredion’s successful go-to-market team with our respective operations to strengthen our future for years to come.”
Grupo Arcor, which has more than 40 manufacturing plants and an annual revenue of US$2.5bn, has entered strategic alliances with other major food industry players in the past including Coca-Cola, Danone, and Grupo Bimbo.
Under terms of the deal, Arcor and Ingredion will hold a 51% and 49% stake in the joint venture, respectively. The joint venture will have a combined turnover of more than $300m, according to the companies.
The joint venture will be managed by a jointly-appointed team of executives who will be responsible for integrating the combined operations to market, sell, and manufacture value-added ingredients (i.e. glucose syrups, maltose, fructose, starch and maltodextrins) within Argentina, Chile, and Uruguay.
Arcor will transfer its ingredient operations to the joint venture, which includes three manufacturing facilities in Argentina. Ingredion, in turn, will transfer its Argentina, Chile, and Uruguay operations to the joint venture, which includes two manufacturing facilities in the districts of Chacabuco and Baradero (province of Buenos Aires).