Ingredion successfully concludes sale of South Korean business
SOUTH KOREA – Ingredion, a global ingredients solutions provider, has completed the sale of its business operations in South Korea to an affiliate of the Sajo Group, a prominent Seoul-based food company.
Ingredion Incorporated is a global ingredient solutions provider that turns corn, tapioca, potatoes, and other raw materials into a myriad of ingredients for the food, beverage, brewing, and pharmaceutical industries, among others.
With operations in more than 120 countries, Ingredion serves its customers with an extensive portfolio of innovative products and solutions.
On the other hand, Sajo Group, which was founded in 1971, is a reputable food company in South Korea, that is also heavily involved in the processing and sale of seafood products.
The sale of the South Korean business, amounting to US$294 million, marks a crucial step in Ingredion’s ongoing business transformation journey.
Ingredion enlisted Citi as its financial adviser and Kim & Chang as its legal adviser for the divestment process, ensuring a smooth transition and compliance with regulatory requirements.
Jim Zallie, President and Chief Executive Officer of Ingredion, emphasized the significance of reshaping the company’s portfolio to unlock value and strategically redeploy assets.
Zallie stated, “The sale of our business in South Korea is an important step for Ingredion as we reshape our portfolio to unlock value and redeploy assets, creating value for shareholders.”
On February 1, Ingredion received US$247 million, net of transaction costs, and anticipates the receipt of the remaining US$47 million over the next three years. The completion of this transaction aligns with Ingredion’s commitment to optimizing its global operations and focusing on strategic areas of growth.
Throughout the entirety of 2023, Ingredion’s operations in South Korea reported unaudited net sales amounting to US$325 million.
The successful sale underscores Ingredion’s dedication to refining its business portfolio and ensuring a streamlined focus on initiatives that drive long-term value for shareholders.
Jim Zallie further commented on the company’s strategic vision, stating, “This action is part of our business transformation journey that further strengthens our focus on growth and supports our long-term strategic vision.”
The CEO expressed confidence in the decision, affirming that it positions Ingredion for sustained growth and enhanced shareholder value.
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