Grupo Arcor, the leading food company of Argentina, and Ingredion Incorporated, a leading global ingredient solutions provider to the food and beverage industry, have signed an agreement to create a joint venture (JV) that will leverage the two companies’ manufacturing expertise, complementary geographic footprints, and commercial capabilities to broaden food and beverage ingredient offerings to customers in Argentina, Chile and Uruguay.
Arcor and Ingredion will hold a 51 per cent and 49 per cent stake, respectively. The joint venture will have a combined turnover of more than $ 300 million.
- Arcor will transfer its ingredient operations to the joint venture, which includes one manufacturing facility in Lules (province of Tucumán) and two manufacturing facilities in the Industrial Complex Arroyito (province of Córdoba).
- Ingredion will transfer its Argentina, Chile, and Uruguay operations to the joint venture, which includes two manufacturing facilities in the districts of Chacabuco and Baradero (province of Buenos Aires).
The manufacturing facilities produce value-added ingredients, such as glucose syrups, maltose, fructose, starch and maltodextrins that are essential to the food, beverage and pharmaceutical industries.
The JV will be managed by a jointly appointed team of executives who will be responsible for integrating the combined operations to market, sell and manufacture ingredients within Argentina, Chile, and Uruguay and to further optimize the manufacturing network and support functions to create incremental shareholder value.
The JV will operate on a stand-alone basis and upon the closing of the transaction, Arcor will consolidate the business. Ingredion will account for its interest in the joint venture under the equity method of accounting, and hyperinflation accounting will be applied to equity income for Ingredion’s reporting purposes.