Cargill Intends To Acquire Pectin Business
Cobham, UK – Cargill has announced that it intends to acquire the global pectin business of Citrico, a manufacturer and international supplier of citrus products for the food, beverage and pharmaceutical industries. The deal is subject to regulatory approval.
Cargill has not previously supplied pectin so the acquisition will strengthen the company's existing texturising and stabilising ingredient portfolio and facilitate the creation of value and growth for customers.
Pectin is a natural hydrocolloid that is extracted primarily from citrus peels, such as lemons, limes or oranges. It provides unique texturising and stabilising benefits and enhances the overall "mouth feel" of food and beverages. It is used widely in a variety of applications, including fruit processing, dairy, non-carbonated beverages, confectionery and the pharmaceutical industry.
"The acquisition of Citrico's pectin business will support Cargill's strategy of becoming a leading provider of specialty ingredients and ingredient systems to food and beverage companies globally, and provides a number of customer benefits", commented Robert Parmelee, President, Cargill Food System Design. "Cargill's ability to leverage pectin with the company's global juice, orange processing and soya protein assets and our specialty flavouring and formulation expertise, strengthens our ability to partner with customers on a broader array of innovative new solutions, such as beverage compounds, in the future."
In 2002, Cargill acquired Cerestar to enhance its capabilities in specialty starches and sweeteners. The company then formed a joint venture to ensure access to xanthan gum that is another widely used texturiser. By integrating Citrico's pectin business with the Cargill / Cerestar specialty starches and xanthan gum business, the company will be better positioned to deliver unique, high value solutions to food and beverage companies worldwide.
Says Ralph Appel, head of Cargill/Cerestar food and pharmaceutical specialty business: "Over the past few years we have increased the number of technical specialists, including hydrocolloid experts, we employ to reflect our growing portfolio of functional products. This team will be further enhanced by the addition of the Citrico employees bringing their expertise in pectin."
The owners of Citrico's pectin business were Citrico International Limited and Citrico Deutschland GmbH. The former entity was put into liquidation in December 2004. RSM has acted as official liquidator. Citrico Deutschland GmbH has continued to operate and was not subject to liquidation proceedings.
Cargill
Cargill is an international provider of food, agricultural and risk management products and services. With 105,000 employees in 59 countries, the company is committed to using its knowledge and experience to collaborate with customers to help them succeed.
Citrico
Citrico is a manufacturer of citrus-based products for the food, beverage and pharmaceutical industries. Founded in 1997, the company has a state-of-the-art pectin facility in Malchin, Germany supplying customers in Europe and globally.
Source: Cargill