Dutch ingredient firm Corbion has entered into a definitive agreement with the shareholders of the Granotec do Brazil to acquire a complete stake in the company for $45m.

Headquartered in Curitiba, Paraná State, Brazil, Granotec do Brazil is engaged in the production of functional blends for the Brazilian bakery industry.

With a workforce of nearly 120 staff members, the firm operates a production facility and a development centre.

The acquisition of Granotec do Brazil is expected to expand Corbion’s range of food ingredients in Latin America.

To finance the acquisition, Corbion will be using its existing debt facilities.

Completion of the deal is subject to customary approvals, which are anticipated to be received in the first half of this year.

once completed, Corbion will integrate Granotec do Brazil into its existing Brazilian operations.

The acquisition is reported to be part of Corbion’s strategy to expand its bakery business geographically, as well as further expand the North American Bakery solution provider model into Latin America.

Corbion CEO Tjerk de Ruiter said: “We have seen continued positive development of our business in Latin America, and this acquisition will provide us with a platform to serve our customers even better.

“Granotec do Brazil greatly complements Corbion’s capabilities and geographical footprint to provide sustainable ingredient solutions in this region.”

In January, Corbion completed the construction of a non-GMO powdered vinegar facility in Gorinchem, the Netherlands.

With this strategic investment, the company intends to ensure the continuation and security of supply to its customers who use vinegar-based solutions as an alternative to synthetic ingredients.