Penford Corporation (NASDAQ: PENX), announced today that it has entered into an agreement to acquire Carolina Starches. Penford will purchase the company interests and certain assets of the businesses currently operated by Carolina Starches, LLC and Keystone Starches, LLC.
“We are elated about joining the Penford team as we see this as an exciting opportunity to continue our aggressive growth strategy, only on a larger platform of success.”
“This acquisition combines two leading specialty starch businesses and will support growth plans for our Specialty Industrial and Food businesses,” said Tom Malkoski, CEO for Penford Corporation. “With the addition of Carolina Starches, we expect to realize benefits in supply chain and operations activities as well as business growth by enhancing our capabilities in providing superior products, customer service and technical support to our customers.”
Carolina Starches produces and sells modified starches and starch blends domestically and in several export markets. This business currently generates approximately $25 million in annual revenue. The company sources domestic potato and corn starches, European potato starch and Asian tapioca starch for processing at its facilities in North Charleston, SC and Berwick, PA.
Ben Cheatham, CEO of Carolina Starches, LLC stated, “We are elated about joining the Penford team as we see this as an exciting opportunity to continue our aggressive growth strategy, only on a larger platform of success.” He also added, “This acquisition builds on a strong geographical presence in North America and improves the gateway to service international opportunities.”
This acquisition is expected to be accretive within the first year and to have significant additional economic benefits in subsequent years. Closing is subject to certain conditions and is expected to occur in December.
Source: Penford Corporation