National Starch has been sold for $1.3 billion to an American buyer.
Corn Products International, based in Illinois, has bought the business from AkzoNobel, the Dutch group that took control of the speciality starch maker when it bought ICI in 2008.
National Starch employs about 2,250 staff, of which 70 are based in Britain at a factory in Goole and an office in Manchester. It operates a total of 11 plants in eight countries, supplying starches to the food, paper, consumer and industrial markets. Last year it had sales of $1.2 billion.
A sale of the business has been on the cards, given AkzoNobel’s focus on speciality chemicals and coatings, but has been delayed in the wake of the financial crisis. The Dutch group said in April that it had received expressions of interest for the unit.
The deal leaves AkzoNobel with only ICI’s Dulux paints business and some chemicals divisions. It sold ICI’s adhesives and electronic materials business to Henkel, the German consumer goods group, for £2.7 billion in 2008.
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Ilene Gordon, of Corn Products, said that the deal represented a significant step forward in its strategy to grow its portfolio and enter new markets.
Analysts at RBS said the sale price was about 10 per cent higher than many had expected and that AkzoNobel was likely to use the proceeds to increase further its exposure to emerging markets or to strengthen its distribution in Europe.