Penford to Acquire Carolina Starches

CENTENNIAL, Colo.Penford Corp. has entered into an agreement to acquire Carolina Starches, including company interests and certain assets of the businesses currently operated by Carolina Starches LLC and Keystone Starches LLC. The deal, subject to certain conditions, is expected to close by December 2010.

Carolina Starches produces and sells modified starches and starch blends domestically and in several export markets, which currently generates approximately $25 million in annual revenue. The company sources domestic potato and corn starches, European potato starch and Asian tapioca starch for processing at its facilities in North Charleston, S.C. and Berwick, Pa.

This acquisition combines two leading specialty starch businesses and will support growth plans for our Specialty Industrial and Food businesses." said Tom Malkoski, CEO for Penford Corporation. With the addition of Carolina Starches, we expect to realize benefits in supply chain and operations activities as well as business growth by enhancing our capabilities in providing superior products, customer service and technical support to our customers."

Commenting on the acquisition, Ben Cheatham, CEO of Carolina Starches LLC, said: We are elated about joining the Penford team as we see this as an exciting opportunity to continue our aggressive growth strategy, only on a larger platform of success. This acquisition builds on a strong geographical presence in North America and improves the gateway to service international opportunities."