The transaction, expected to close by second half of 2020 and already approved by both companies’ boards, is subject to approval by PureCircle’s shareholders and customary regulatory approvals. Until then, Ingredion and PureCircle will remain separate, independent companies with separate product portfolios and go-to-market teams.
The news comes less than two weeks after PureCircle released its final audited results for the financial year ended June 30, 2019, which revealed the company posted a US$79.7 million loss.
The deal will bolster Ingredion’s sugar reduction and specialty sweeteners portfolio—one of the company’s five specialty growth platforms. PureCircle’s leadership in stevia, combined with Ingredion’s extensive portfolio of texturizers and functional build-back ingredients and expertise in formulating in a wide range of food applications, will provide the full suite of complementary ingredients and integrated solutions to solve the sugar reduction challenges of food and beverage companies. PureCircle also will leverage Ingredion’s global go-to-market network, as well as its formulation expertise and broad product portfolio to drive growth synergies and savings to both companies.
“PureCircle is a widely recognized innovator with a proven track record for producing great-tasting, plant-based stevia. Ingredion’s successful and global go-to-market model combined with our formulation expertise will be highly complementary with PureCircle’s capabilities,” said Ingredion President and CEO Jim Zallie. “We have tremendous respect for the business that PureCircle has built for nearly two decades and are excited to welcome them to the Ingredion family. We are ready to support this new phase of growth with stevia’s on-trend and sustainable solutions.”
PureCircle’s innovative stevia sweeteners and flavor modifiers are supported by full vertical integration from a global network of agricultural partners. The company has invested in R&D and innovation to produce a growing variety of stevia sweeteners. PureCircle has more than 214 stevia-related patents and over 300 patents pending. The company also has expanded and invested in new manufacturing technologies, including the latest expansion of its Malaysian stevia extract facility in 2017.