Specialty ingredient manufacturer Penford has agreed to takeover Gum Technology, a gum and hydrocolloids distribution, blending and services firm, for an undisclosed sum.
Based in Tucson, Arizona, Gum Technology primarily caters to the food and beverage industries. It posted revenues of about $12m in 2013.
The company specializes in customized stabilizers and its products are found in a variety of food products, including beverages, sauces, bakery, frozen foods, jams and fruit fillings.
Penford CEO Tom Malkoski said, "Gum Technology's product line and reputation for outstanding customer service will broaden Penford's portfolio of functional and specialty ingredient systems for existing customers and open new segments to the company.
"This acquisition fits well with our strategy of accelerating the pace of growth of the company's specialty businesses."
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."
The acquisition, which is subject to certain conditions, is expected to close in late March.
Penford expects the deal to be accretive within the first year with significant growth occurring in subsequent years.
