Cargill Targets Pectin Business

NEW YORK - Mar 8/05 - SNS -- Cargill intends to buy the global pectin business of Citrico, a manufacturer and international supplier of citrus products for the food, beverage and pharmaceutical industries. The deal is subject to regulatory approval.

Cargill has not previously supplied pectin so the acquisition will strengthen the company's existing texturizing and stabilizing ingredient portfolio and will facilitate the creation of value and growth for customers.

Pectin is a natural hydrocolloid that is extracted primarily from citrus peels, such as lemons, limes or oranges. It provides unique texturizing and stabilizing benefits and enhances the overall 'mouth feel' of food and beverages. It is used widely in a variety of applications, including fruit processing, dairy, non-carbonated beverages, confectionery and the pharmaceutical industry.

In 2002, Cargill acquired Cerestar to enhance its capabilities in specialty starches and sweeteners. The company then formed a joint venture to ensure access to xanthan gum that is another widely used texturizer. Citrico's pectin business will be integrated with the Cargill / Cerestar specialty starches and xanthan gum business.

The owners of Citrico's pectin business were Citrico International Limited and Citrico Deutschland GmbH. The former entity was put into liquidation in December 2004. RSM has acted as official liquidator. Citrico Deutschland GmbH has continued to operate and was not subject to liquidation proceedings.