Corn Products International, Inc, a US-based refiner and processor of corn-based food additives and sweeteners has agreed to buy National Starch, a provider of specialty starches, from the Netherlands-based paint company AkzoNobel, for $1.3 billion in cash.
Akzo Nobel had acquired National Starch in 2008 when it bought British paint maker ICI.
However, it never considered the starches business as part of its core business. Nonetheless it could not put National Starch on the block because of the financial crisis.
Recently, amid signs of market recovery, Akzo Nobel began tapping the market for potential buyers.
Westchester, Illinois-based CPI provides a wide variety of ingredients to customers in more than 60 industries, including the food, beverage, pharmaceutical, animal feed, corrugating, paper and textile sectors.
With net sales of $3.7 billion in 2009, the company operates plants in 15 countries, including company-owned operations, joint ventures, alliances and technical agreements.
Bridgewater, New Jersey-based National Starch reported revenues of $1.2 billion from sales of specialty starches in 2009.
The acquisition will give CPI access to new markets such as Europe, and improve its scale and capabilities in many of its existing locations.
National Starch has 2,250 employees working in 11 plants across 8 countries.