Penford Corporation, a leader in ingredient systems for food and industrial products, announced today that it has completed the acquisition of Gum Technology, an Arizona close corporation. Gum Technology is a gum and hydrocolloids blending, services and distribution company, generating revenues of about $12 million, primarily in the food and beverage industries.
"Gum Technology's product line, culture, and approach to the market are aligned with Penford's and with our efforts to build our specialty ingredients businesses. Both teams are enthusiastic about opportunities to create value for customers through technology, product innovation and technical service," said Tom Malkoski, Penford Corporation CEO.
As a business unit of Penford Food Ingredients, Gum Technology will continue to offer a range of gums and other hydrocolloids throughout North America and Asia. Allen Freed, former CEO of Gum Technology, will join Penford to assist in the overall integration and support corporate business development activities.
In connection with this acquisition, on March 25, 2014, Penford granted Allen Freed and two other key employees of Gum Technology options to purchase up to an aggregate of 45,000 shares of the Company's common stock, $1.00 par value per share, at an exercise price equal to the closing price on March 25, 2014. Each grant was approved by a majority of Penford's independent directors, and was granted as an inducement material to each recipient's entering into employment with Penford or a subsidiary of Penford in accordance with Nasdaq Listing Rule 5635(c)(4). The options have a term of seven years and will vest over a three year period, with one-third of the options vesting on each anniversary of the grant date, provided that the recipient's employment with Penford or a subsidiary of Penford has not been terminated for cause or the recipient has not resigned by such date. The vesting of these options will accelerate in full immediately prior to a change of control.
