CEDAR RAPIDS — Ingredion Inc. plans to acquire Penford Corp., a specialty ingredients company with a facility in Cedar Rapids, in a deal with an aggregate value of $340 million.

The deal could close as early as the end of the year.

Officials did not respond by deadline for information on how the deal could affect local facilities.

The boards of directors of both companies have approved the acquisition, according to a news release. It is subject to approval by Penford’s shareholders and regulators, as well as to other customary closing conditions.

“This acquisition is another step in executing our strategic blueprint for growth,” said Ilene Gordon, Ingredion chairman and chief executive officer, in a statement. “It expands our higher-value specialty portfolio, establishes manufacturing of specialty potato starches in North America and builds our presence in nature-based hydrocolloid ingredients.”

Ingredion, based in Westchester, Ill., is an ingredients provider specializing in nature-based sweeteners, starches and nutrition ingredients. Ingredion said it will pay $19 per share for Penford.

Penford, which had net sales of $467 million in fiscal year 2013, has its headquarters in Centennial, Colo., near Denver. The company has six plants in the United States, all of which make specialty starches.

Its Cedar Rapids facility, at 1001 First St. SW, employs 242, according to the Cedar Rapids Metro Economic Alliance. It is the company’s largest facility.

Penford Cedar Rapids representatives could not be immediately reached for comment.

Mayor Ron Corbett said Wednesday that the sale of a company such as Penford can be good news.

By way of example, Corbett said the Genencor enzyme production facility at 1000 41st Ave. Dr. SW had been purchased by Denmark-based Danisco and then in 2011 by DuPont. DuPont subsequently has invested in the plant, he said.

Penford has an extensive history in Cedar Rapids, dating back more than 110 years.

The plant. located on the Cedar River, saw significant damage from the 2008 Flood. Management moved to a temporary off-site location after shutting down the facility.

After months of repair, Penford restored starch and ethanol production in October 2008.

Corbett said that Penford, which has estimated its losses in the flood at $50 million, quickly repaired the plant after the flood and got back into operation.

“The fact that they made the capital investment in the facility shows that the products they produce there have value,” the mayor said. “Otherwise they wouldn’t have put that type of money into it.”

Jennifer Pratt, the city’s interim development director, on Wednesday said a development agreement between the City Council and Penford will remain in place and will allow the purchaser of Penford to buy the city’s Riverside Park next to the Penford plant if the facility needs it to expand.

In the agreement, signed in November 2012, Penford said it will pay $1.67 million for the neighborhood park if it needs it and will provide access for a future flood protection wall and a trail between the plant and the Cedar River

“This is a tremendous opportunity to combine Penford’s and Ingredion’s complementary product portfolios and capabilities,” said Thomas Malkoski, president and CEO of Penford, in a news release.

Seacor Holdings Inc., which owns about 9.34 percent of Penford’s outstanding common stock, said it supports the transaction, according to Penford.

The merger is expected to generate annual cost savings of at least $20 million — primarily from efficiencies in manufacturing, procurement, general and administrative functions and logistics, Ingredion officials said.

“We will move quickly to integrate the businesses, attain synergy savings and provide a broader offering of higher-value specialty products to our customers around the world,” Ingredion’s Gordon said.

Reporter Rick Smith contributed to this story.