Penford signs deal to take over Gum Technology

Penford has signed a deal to take over Gum Technology, a privately-held gum and hydrocolloids provider, to accelerate the growth rate of its speciality businesses.

The financial terms of the transaction have not been disclosed.

Headquartered in Tucson, Arizona, Gum Technology markets a range of gums and other hydrocolloids throughout North America and Asia and specialises in customised stabilisers.

The company primarily serves the food and beverage industries and its products are widely used in beverages, sauces, bakery, frozen foods, jams and fruit fillings, spice blends, dairy applications, and nutraceuticals.

Penford CEO Tom Malkoski said, "Gum Technology’s product line and reputation for outstanding customer service will broaden Penford’s portfolio of functional and speciality ingredient systems for existing customers and open new segments to the company.

"We see opportunities in food and industrial bio-products for high value, specialised products from the combination of our product lines and customer relationships."

Malkoski added that the company’s food business continues to expand, mainly from new products and ingredient systems, and its industrial bio-products unit is also showing meaningful progress.

Gum Technology CEO Allen Freed said, "We are pleased to join Penford and anticipate exciting opportunities to combine our companies’ expertise in product lines and broad geographic reach."

Subject to certain closing conditions, the transaction is expected to close later this month.

According to Penford, the deal would be accretive within the first year with growth opportunities occurring in the following years.

The company manufactures and markets ingredient systems for food and industrial applications, and runs seven manufacturing and/or research facilities in the US.