Quick Take
Ingredion (INGR) has announced the proposed acquisition of a 75% majority interest in PureCircle Limited (PCRTF ) for $232 million.
PureCircle has developed alternative sweetener ingredients using Stevia leaves.
With the deal, INGR will combine PureCircle's capabilities with its sales network and portfolio of food and beverage technologies to help customers reduce the sugar content in their products.
The deal makes sense but appears pricey, and INGR's stock looks fully valued at its current level, so I'm Neutral on INGR.
Target Company
Chicago, Illinois-based PureCircle was founded to provide food and beverage companies