Ingredion to Acquire 75% Stake in PureCircle

Ingredion Incorporated has announced the acquisition of a controlling 75% stake in PureCircle, one of the leading producers and innovators of stevia sweeteners for the global food and beverage industries.  

The proposed acquisition has been approved by the boards of both companies. The companies expect the transaction to close during the second half of 2020 subject to approval by PureCircle’s shareholders and receipt of the required regulatory approvals. Until then, Ingredion and PureCircle will remain separate, independent companies with separate product portfolios and go-to-market teams.

Sugar reduction is one of Ingredion’s five specialties growth platforms. The company is committed to investing in its growth and stevia is a core product for the sugar reduction portfolio. Beyond its leadership in the market, PureCircle brings innovation and manufacturing expertise related to stevia, the representatives of Ingredion said. Upon completion, both companies will be able to build on these strengths and PureCircle will be able to leverage on Ingredion’s global go-to-market network, as well as its formulation expertise and broad product portfolio will drive both growths as well as significant savings to both companies.

PureCircle has demonstrated its leadership in the stevia industry through:

• High-quality stevia sweeteners and flavor modifiers supported by full vertical integration from a global network of agricultural partners;
• R&D and innovation to produce a growing variety of stevia sweeteners with sugar-like taste to become a resource and collaborative partner for food and beverage companies;
• Advanced plant breeding to deliver optimal economics and the best tasting components of the stevia leaf;
• Investing in research and development to obtain the grant of over 214 stevia-related patents with more than 300 applied for patents pending; 
• Expansion and investment in new manufacturing technologies, including the latest expansion of its Malaysian stevia extract facility in 2017. 

Ingredion and PureCircle intend to bring their customers key technologies that solve many complex formulation challenges faced by food and beverage developers today. 

“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’s president and chief executive officer Jim Zallie.

“We at PureCircle are glad to have found a strong partner in Ingredion who shares our mission of encouraging healthy diets around the world and being the preferred supplier of high-purity, great-tasting stevia ingredients for the global food and beverage industry. This acquisition should excite the current and potential customers of both companies, as the combined companies will be able to serve our customers with better services, wider product range and extend deeper into the global, regional and local markets,” said Peter Lai Hock Meng, CEO of PureCircle.