Corn Products to Acquire National Starch for $1.3 Billion

WESTCHESTER, Ill.Corn Products International Inc. has entered into a definitive agreement to acquire National Starch from AkzoNobel for $1.3 billion in cash. The acquisition, which has been approved by the boards of directors of Corn Products International and AkzoNobel, is expected to close in third quarter 2010, subject to customary regulatory approvals. The transaction is expected to be accretive by the end of 2011.

"The acquisition of National Starch represents an exceptional opportunity for our company and a significant step forward toward achieving our strategic goals," said Ilene Gordon, chairman, president and CEO of Corn Products International. "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.

"Combining National Starch with Corn Products will create an ingredient solutions leader with nearly $5 billion in revenues. The combined company will benefit from leading, innovative technology; enhanced geographic scale; a broader and deeper product portfolio; and access to new market segments."

Gordon added that the acquisition gives Corn Products access to new markets such as Europe, and improves its scale and capabilities in many of our existing global locations. The company will be able to better serve its global customers with our enhanced geographic footprint and the addition of National Starch's technology. It also expects significant production efficiencies and cost synergies that will make the company more competitive around the world.