CP Kelco announced it has signed an equity interest transfer agreement to purchase 100% of Shandong Gold Millet Biological Products Company. The transaction is expected to close Feb. 15, 2006, pending formal approval of certain agencies of the Chinese government. Financial terms of the transaction were not announced.
“As our biogums business continues to grow and as improvements have been made in Chinese-made xanthan gum, we have aggressively and selectively sought a strong acquisition opportunity in China,” said Mike Size, biogums business unit director, CP Kelco.
The pending addition of Gold Millet operations is expected to boost CP Kelco’s xanthan gum production capacity and enable the business to better serve its growing xanthan gum customer base in food and non-food industries and emerging regional markets.