Dutch food ingredients and confectionery group CSM has completed the acquisition of the gluconic acid derivatives business of Avebe subsidiary, Glucona. The move is part of its strategy to expand worldwide activities in the food and pharmaceutical markets.
The acquisition concerns Glucona's activities in high quality gluconic acid derivatives which will be merged with the CSM Biochemicals division, otherwise known as PURAC. The acquisition covers the majority of Glucona's operations but does not include the acquisition of specialty starches (excipients).
Glucona has a strong market position in gluconic acid derivatives and production facilities in Ter Apelkanaal (the Netherlands) and Janesville (Wisconsin, USA). PURAC is a market leader in lactic acid and lactates, with production sites in Gorinchem (the Netherlands), Montmelo (Spain), Blair (Nebraska, USA) and Campos (Brazil).
According to CSM, the Glucona business represents an important addition to PURAC's portfolio. Like lactic acid, gluconic acid is an organic acid produced by fermentation. With gluconic acid derivatives, PURAC hopes to enhance its product range. PURAC lactic acid and lactates are applied in the food and pharmaceutical industries as a food preservative, mineral enricher, flavouring agent or pH regulator. The gluconic acid derivatives are mainly used for calcium and mineral enrichment in food and pharmaceutical products.
CSM maintains that the integration of the gluconic acid derivative activities in PURAC will create synergy opportunities, enabling PURAC to offer a more complete product range for new and existing customers.
Terms of the agreement were not disclosed.