Warburg Pincus previously pulled out of a deal for Harbin Pharmaceutical
Warburg Pincus, a US-based buyout firm, plans to acquire Shangdong-based Gum, the world's second-largest producer of a food additive, with about US$100 million in financing in a leveraged buyout, according to sources.
The source did not disclose how much Warburg Pincus is paying for the acquisition, or the size of the stake it plans to buy.
Gum produces xanthan gum, made from fermented corn sugar which can replace gluten in baked goods, such as pizza bread.
The chemical is also used as a thickening agent in cosmetics and in the oil industry.
The company, which has an annual production capacity of 20 kilotonnes mainly for exports, supplies such multinational food companies as Kraft and Unilever.
