Ingredion has signed an agreement with Argentinian food producer Grupo Arcor to form a joint venture (JV) to broaden food and beverage ingredient offerings to customers in Argentina, Chile, and Uruguay.

According to the agreement, Arcor will hold a 51% stake in the JV while the remainder will be held by Ingredion.

The JV will have a combined turnover of more than $300m.

Ingredion South America president Jorge Elías said: “We are pleased to announce our joint venture with Grupo Arcor, a leader and pioneer in the food industry.

“We share similar values and are passionate about creating a world-class experience and offering ingredient solutions that deliver value for our customers. We look forward to combining Ingredion’s successful go-to-market team with our respective operations to strengthen our future for years to come.”

Under the agreement, Arcor will transfer its ingredient operations to the JV, which includes a manufacturing facility in Lules, Argentina, and two manufacturing facilities in the Industrial Complex Arroyito.

On the other hand, Ingredion will transfer its operation in Argentina, Chile and Uruguay to the JV, which includes two manufacturing facilities in the districts of Chacabuco and Baradero in the province of Buenos Aires.

The facilities are engaged in the production of value-added ingredients such as glucose syrups, maltose, fructose, starch and maltodextrins for the food, beverage and pharmaceutical industries.

The new JV will be managed by a jointly appointed team of executives and will be responsible for integrating the combined operations to market, sell and manufacture ingredients within Argentina, Chile and Uruguay.

Creation of the new JV is subject to regulatory approvals and customary closing conditions.

Upon completion of the deal, the JV will operate as a standalone business, and Arcor will consolidate the business.

For this transaction, Infupa is serving as the financial adviser to Arcor with Bruchou as its legal counsel.

On the other hand, Finanzas & Gestión is serving as the financial adviser to Ingredion while Baker & McKenzie acts as its legal adviser.