WESTCHESTER, Ill., Apr 8, 2004 /PRNewswire-FirstCall via COMTEX/ -- Corn Products International, Inc. (CPO) and GTC Nutrition LLC today announced that Corn Products International has acquired a 75-percent stake in GTC, based in Golden, Colorado.
Terms of the transaction were not disclosed.
GTC supplies a variety of short-chain fructooligosaccharides (scFOS) and other ingredients for the food and animal nutrition industries. The ingredients are sold under the trade names NutraFlora(R), CalciLife(TM), Natureal(R), Xylitol, and FortiFeed(R), and are found in such products as beverages, soy products, dairy products, baked goods, medical foods, nutritional supplements, candies, mints, chewing gums, and animal foods and feeds.
As part of the agreement, Corn Products International and Meiji Seika Kaisha, Ltd., in Japan, have entered into a technical licensing agreement. This agreement gives Corn Products International access to the technology to produce scFOS.
"This is an opportunity to better serve the ingredient needs of both companies' customers, and supports our Company's mission of becoming a premier ingredient provider," said Sam Scott, chairman, president and chief executive officer of Corn Products International.
"We are excited to join forces with Corn Products in the specialty ingredients market," stated Patrick Smith, chief executive officer of GTC Nutrition. "Corn Products is widely recognized as a leader in the food ingredient business. Our new alliance not only ensures GTC access to scFOS from a North American facility, but will also position GTC for substantial growth, allowing us to better serve our growing customer base."
As part of the investment, a new manufacturing channel will be installed at one of Corn Products International's Canadian facilities to produce scFOS. The channel is currently scheduled to begin operation by the end of 2005.
About Corn Products International, Inc.
Corn Products International, Inc. is one of the world's largest corn refiners and a major supplier of high-quality food ingredients and industrial products derived from the wet milling and processing of corn and other starch- based materials. The Company is the number-one worldwide producer of dextrose and a leading regional producer of starch, high fructose corn syrup and glucose. In 2003, the Company recorded net sales of $2.1 billion with operations in 19 countries at 37 plants, including wholly owned businesses, affiliates and alliances. Headquartered in Westchester, Ill., it was founded in 1906. The Company is listed on the New York Stock Exchange under the symbol CPO. Additional information can be found on the World Wide Web at www.cornproducts.com .
About GTC Nutrition LLC
GTC is a leader in providing natural, science-based ingredients to the food processing, dietary supplements and animal feed industries. GTC promotes health throughout North America, South America, Australia and New Zealand with innovative functional food ingredients and unsurpassed customer support. For more information, visit www.gtcnutrition.com .
This press release contains or may contain forward-looking statements concerning the Company's financial position, business and future earnings and prospects, in addition to other statements using words such as "anticipate," "believe," "plan," "estimate," "expect," "intend" and other similar expressions. These statements contain certain inherent risks and uncertainties. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, stockholders are cautioned that no assurance can be given that our expectations will prove correct. Actual results and developments may differ materially from the expectations conveyed in these statements, based on various factors, including fluctuations in worldwide commodities markets and the associated risks of hedging against such fluctuations; fluctuations in aggregate industry supply and market demand; general political, economic, business, market and weather conditions in the various geographic regions and countries in which we manufacture and sell our products, including fluctuations in the value of local currencies, energy costs and availability and changes in regulatory controls regarding quotas, tariffs, taxes and biotechnology issues; increased competitive and/or customer pressure in the corn-refining industry; the outbreak or continuation of hostilities; stock market fluctuation and volatility; and the resolution of the current uncertainties relating to the Mexican HFCS tax. Our forward-looking statements speak only as of the date on which they are made and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections. For a further description of risk factors, see the Company's most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q or 8-K.