Corn Products International, Westchester, N.Y., will buy Bridgewater, N.J.-based National Starch from Dutch owner AkzoNobel for $1.3 billion in cash.
The purchase will create an ingredient company with revenues of $5 billion. Ilene Gordon, Corn Products’ chairman, president and C.E.O., said the deal will broaden each company’s product offerings and expand their geographic reach.
“The acquisition of National Starch represents an exceptional opportunity for our company and a significant step forward toward achieving our strategic goals,” she said. “The acquisition aligns with our strategic priorities to grow our ingredient portfolio, increase our presence in priority food processing segments, enter new markets and develop innovative solutions that better serve our customers.”
Gordon added that the deal is expected to result in $50 million in cost savings. It is scheduled to close in the third quarter, provided it gains regulatory approval.