Ingredion Inc. and PureCircle Ltd. have reached a deal for Ingredion to acquire a controlling 75% stake in the stevia company. The proposed acquisition has been approved by the boards of both companies, but it still requires approval by PureCircle’s shareholders. The companies expect the transaction to close during the second half of this year.

The full transaction is a little more complicated, with PureCircle being sold into a holding company owned by Ingredion for £185.3 million ($231 million). Some current Pure Circle shareholders would retain 25% of the company.

It’s a fit for both companies. Eight years ago, Ingredion went by the name Corn Products International, and high-fructose corn syrup was its top product. As HFCS fell out of favor and Ingredion diversified, the company bought into or partnered for replacement sweeteners – including Matsutani’s allulose and stevia from SweeGen/Blue California – but it never had a top-seller it could call its own.

While Malaysia-based PureCircle has long been a global leader in stevia, the company has suffered recent financial setbacks. Last year it had to restate its fiscal 2017 and 2018 results following an accounting probe, and it delayed its earnings report for the year ended June 30, 2019. Its shares were suspended from trading in London.

For fiscal 2019, PureCircle generated revenue of $124 million and a loss before tax of $72 million. Following the accounting probe, its CEO and CFO were replaced late last year.

Sugar reduction is one of Ingredion’s five growth platforms and Ingredion is committed to invest in its growth, the company said. And stevia is a core product for the sugar reduction portfolio.r

“Ingredion has followed the development of PureCircle for several years and believes that it is a fundamentally strong and attractive business that will be a great fit with Ingredion’s long-term strategy, given PureCircle’s leadership position in this space,” a company statement said.

The companies headquarters are not far from each other in suburban Chicago.

“PureCircle is a widely recognized innovator with a proven track record for producing great-tasting, plant-based stevia,” said Ingredion’s President/CEO Jim Zallie. “Ingredion’s successful and global go-to-market model combined with our formulation expertise will be highly complementary with PureCircle’s capabilities.”