Tate & Lyle bulks up with new ingredients acquisition

Tate & Lyle PLC (LSE:TATE) announced it is acquiring ingredients peer CP Kelco for $1.8 billion (£1.4 billion), in a deal with JM Huber.

The British business sees it as a strategic move to drive stronger revenue growth towards the higher end of a 4% to 6% range, and to generate significant underlying profit margin improvement over the coming years.

Nick Hampton, Tate & Lyle chief executive, described it as “the perfect fit”.

“It significantly strengthens our Sweetening, Mouthfeel, and Fortification platforms, enhances our solutions capabilities across our four core categories, and unlocks new growth opportunities,” Hampton said in a statement.

JM Huber will become a major shareholder in Tate & Lyle, with a 16% interest, and it will have the right to appoint two non-executive directors to the company’s board.

The acquisition is expected to be completed in the fourth quarter of 2024, pending regulatory and shareholder approval.