Milling & Baking News - June 29, 2010 - 9

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Corn Products expanding in ingredients
with acquisition of National Starch
WESTCHESTER, ILL. - Corn Products International, Inc. has entered
into an agreement to acquire National
Starch Food Innovation from Akzo
Nobel N.V. for $1.3 billion in cash. The
acquisition is expected to close at the
end of the third quarter of 2010 and is
subject to regulatory approvals.
"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 chief
executive officer 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."
The transaction is expected to result
in at least $50 million in cost synergies
and to be accretive on a cash basis by
the end of 2011, Ms. Gordon said.
In a June 21 conference call to discuss the acquisition, Ms. Gordon said
adding National Starch will increase
the portion of Corn Products' business
serving its priority food
markets to approximately 51% of sales
from 42% previously,
while the proportion of sales to the
soft drink market will decline to about
10% of sales from 14%.
She noted that the long-term impact
of adding National Starch should be
far reaching.
"Their core ingredient expertise
complements our own and results
in ingredient offering that covers a
broad spectrum of ingredient solutions," Ms. Gordon said. "In addition, National Starch has been focusing on new ingredient development
and solutions in four springboard

Canada Bread breaks ground on
Canada's largest bakery

bakingbusiness.com / world-grain.com

platforms - delivery systems,
wholesome clean label ingredients,
nutrition and texturants. We expect
that these springboard platforms,
along with the breadth of ingredients
offered, will make us a more valued
supplier to our customers and result
in sustained growth and shareholder
value creation."
Based in Bridgewater, N.J., National
Starch had revenues of approximately
$1.2 billion during 2009. The company
makes ingredients, including many of
the fat replacers, thickeners and texturisers used in processed food. The
company has 2,250 employees around
the world and operates 11 plants in 8
countries, including new geographies
for Corn Products such as the United
Kingdom, Germany, Australia and
New Zealand.
"This acquisition gives us access
to new markets such as Europe, and
improves our scale and capabilities in
many of our existing global locations,"
Ms. Gordon said. "We will be able to
better serve our global customers with
our enhanced geographic footprint
and the addition of National Starch's
technology. Further, we expect significant production efficiencies and cost
synergies that will make us more competitive around the world." MBN

DeLand Bakery expanding production
capacity for organic bread

CANADA BREAD

TORONTO - Officials with Canada
Bread Company, Ltd. joined government
and civic officials on June 23 to break
ground on a new 375,000-square-foot
bakery located in the Red Hill Business Park in Hamilton, Ont. The bakery
will be the largest in Canada. "Today
marks a major step forward with our
$100 million investment in building a
world-class facility that will be Canada's
largest bakery and also support our
sustained growth as Canada's leading fresh bakery business," said Barry

Business

McLean, president, Canada Bread Fresh
Bakery. "We are very pleased to have
selected Hamilton as the location where
we will grow. Not only is the city a great
partner, it offers a skilled workforce, excellent infrastructure, and ready access
to our markets." Canada Bread said the
construction project is expected to take
approximately 12 months with the first
production lines being commissioned by
July 2011 and remaining lines phased in
over the next 18 months. The project is
being led by FirstGulf Corp., Toronto. MBN

DAYTONA BEACH, FLA. - DeLand Bakery
and Natural Market is preparing to expand
behind a $1.8 million loan secured with the
assistance of the Small Business Development
Center at Daytona State College. Founded in
1993, DeLand specializes in organic and certified-organic bakery products, including bread,
rolls and bagels.
As part of the expansion plans, DeLand
said it will increase its location size to 42,000
square feet from 13,500 square feet, and it will
purchase additional equipment to accommodate stepped-up productivity to meet national
demand. DeLand also said it plans to develop
its health and beauty offerings to include a spa
treatment room and to offer health seminars to
customers.
On the company's web site DeLand describes itself as the "Home of the Authentic
Millet Bread." Millet, which is related to sorghum, has a mildly sweet, nut-like flavor and
contains a myriad of beneficial nutrients. It is
nearly 15% protein, contains high amounts of
fiber, B-complex vitamins, including niacin,
thiamin, and riboflavin, the essential amino
acid methionine, lecithin, and some vitamin E.
It also is high in the minerals iron, magnesium,
phosphorous, and potassium. MBN
Milling & Baking News June 29, 2010 / 9

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Milling & Baking News - June 29, 2010

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