The move, which is expected to be complete in the first quarter of 2007, will significantly increase the company's ingredients portfolio.
"This acquisition will strengthen our sweeteners platform and reinforce our Pathway strategy to expand our value-added, specialty product portfolio and become a broader-based ingredients company," said Sam Scott, chairman, president and chief executive officer of Corn Products International.
"The acquisition also would make us a leading producer of polyols in Latin America with facilities in Brazil, Mexico and Colombia, and would allow us to enter the US and Canadian markets primarily as a specialty polyols supplier," he added.
Financial terms of the deal were not disclosed, although the combined businesses are expected to have annual sales of nearly $100m. The company said it expects the transaction to be accretive in the first year to its earnings per share.
The food business of SPI Polyols produces and sells specialty polyols, including crystalline sorbitol, crystalline maltitol, mannitol, specialty liquid polyols and liquid sorbitol for the food, beverage, confectionary, industrial, personal and oral care, and nutritional supplement markets.
Polyols are sugar-free, reduced calorie sweeteners primarily derived from starch.
The company will also acquire the remaining stake in Brazil's Getec Guanabara Quimica Industrial, one of the nation's major producers of polyols, including liquid sorbitol and mannitol, and anhydrous dextrose. These ingredients serve the food, candy and confectionary industries, as well as the personal care and pharmaceutical markets. In September 2006, Corn Products International increased its equity ownership in Getec to 50 percent from 20 percent.
Corn Products International, currently a leading producer of starch, high fructose corn syrup and glucose, also confirmed today that its wholly owned Argentinean subsidiary, Productos de Maiz, has acquired Peru's only corn refiner, DEMSA Industrial Peru - Derivados del Maiz.
Established in 1964 and with annual revenues of approximately $15m, DEMSA sells regular and modified corn starch, glucose, grits, corn oil, corn flour, hominy feed, caramel color and other products to the food and beverage industries, amongst others.
"We believe DEMSA will be especially helpful to the overall performance of our Andean region and, along with Getec, enhance our historically strong market position and extensive territory coverage in South America," said Scott.