Cargill to Acquire FMC’s Pectin Operations
10 Aug 2015 --- Cargill has signed an agreement with FMC to acquire its pectin operations, including a production site in Milazzo, Sicily (Italy). Pectin is a key component of Cargill’s texturizing portfolio and the company is keen to further develop its offering.
“We took this step so we can provide food companies around the world with a strong supply of high quality pectin available; a ‘label-friendly’ food ingredient for which we see a clear growing demand,” says Colleen May, president of Cargill’s texturizing solutions business. “With a direct access to fresh citrus peel, the facility is ideally located. It will be a perfect addition to our existing network of facilities in Europe and complement our supply chain.”
The Milazzo plant is a highly specialized pectin production facility located in the middle of the citrus orchards near the Tyrrhenian Sea in Sicily. Since 1990 the facility produces high quality HM (high methoxyl) pectin, running primarily on fresh peel. The site comprises fresh peel washing and drying equipment, a pectin production line, dry peel storage silos and a quality control laboratory. It is operated by an experienced team with an outstanding processing and safety record.
Frank Monmont, EMEA regional director of Cargill’s texturizing solutions business explains: “This acquisition underlines our commitment to drive distinctive value for our stakeholders. We intend to further develop the relationship with the local lemon processing companies, ultimately to the benefit of our customers, who seek reliable partners to meet their growing pectin demand”.
The transaction is subject to regulatory approvals and is expected to close in the next few months.
FMC reported that the move came as a result of a change in strategy for pectin, shifting focus from the manufacture of standard grade pectin to concentrate on higher-value, more specialized solutions for its customers. FMC will continue to offer pectin as one of many naturally-derived products it provides to industry-leading customers it serves.
"We are re-allocating our resources away from the manufacture of standard grade pectin to concentrate on developing the very best solutions that meet our customers' needs," said Eric Norris, vice president, global business director, FMC Health and Nutrition. "For more than 75 years, FMC has helped solve its customers' most pressing food and beverage challenges. Pectin remains an important product line in our broad portfolio of ingredients, including microcrystalline cellulose, alginates, carrageenan and natural colors."
FMC and Cargill have agreed on commercial terms of a supply agreement, which, when signed, will provide FMC with more efficient and flexible sourcing on a broad range of both standard and specialty pectin grades.
"Our resources and people are better spent on partnering with customers and innovating the very best solutions. We are pleased to have found a buyer who we believe will continue to invest in the Milazzo production site, its employees and the community," Norris said.
