SOUTH KOREA- Ingredion, a leading global ingredient solutions provider, has announced its decision to divest its business operations in South Korea to an affiliate of the Sajo Group, a prominent food company headquartered in Seoul, South Korea.

While the specific terms of the divestment were not disclosed, the transaction is anticipated to be finalized in 2024, pending regulatory approvals and customary closing conditions.

James P. Zallie, President and Chief Executive Officer at Ingredion, emphasized that this strategic move aligns with the company’s broader business transformation goals. 

As we look forward in our business transformation, we will take actions to sharpen our customer focus and pursue global growth opportunities. We believe this transaction is an example of putting our strategy into action to unlock value and redeploy assets in pursuit of our growth roadmap to create value for shareholders,” Zallie stated. 

The decision to divest the South Korean business is part of Ingredion’s proactive approach to optimizing its portfolio and focusing on key strategic priorities. 

By exiting this segment of the market, Ingredion aims to streamline its operations and concentrate on core areas that align with its long-term growth strategy.

Ingredion has enlisted Citi as its financial adviser and Kim & Chang as its legal adviser for the divestment process, ensuring a smooth transition and compliance with regulatory requirements.

The move comes at a time when companies across various industries are reassessing their portfolios and realigning their business strategies to adapt to evolving market dynamics. Ingredion’s decision reflects a commitment to agility and responsiveness in a rapidly changing business environment.

Ingredion shareholders will be keenly watching the developments surrounding this divestment, as the company continues its journey of transformation and seeks to enhance shareholder value through strategic initiatives.

Ingredion Incorporated is a global ingredient solutions provider that turns corn, tapioca, potatoes, and other raw materials into a myriad of ingredients for the food, beverage, brewing, and pharmaceutical industries, among others. 

With operations in more than 120 countries, Ingredion serves its customers with an extensive portfolio of innovative products and solutions.

On the other hand, Sajo Group, which was founded in 1971, is a  reputable food company in South Korea, that is also heavily involved in the processing and sale of seafood products.