Tate & Lyle to acquire CP Kelco

Tate & Lyle agreed to acquire the entire issued share capital of CP Kelco U.S., CP Kelco China, and CP Kelco ApS, along with their respective subsidiaries (or CP Kelco). CP Kelco provides pectin, specialty gums, and other natural ingredients. The acquisition from J.M. Huber Corporation, is for an implied total consideration of US$1.8 billion, which is approximately £1.4 billion, on a cash-free, debt-free basis, termed as the 'Proposed Transaction.'

The Proposed Transaction combines two complementary businesses – Tate & Lyle, a leader in Sweetening, Mouthfeel and Fortification, and CP Kelco, a leader in pectin and speciality gums – to create a leading, global speciality food and beverage solutions business.

Their product portfolios, technical expertise and complementary category offering deliver a compelling customer proposition, significantly enhancing Tate & Lyle’s solutions capabilities and increasing the opportunity to benefit from growing global consumer demand for healthier, tastier and more sustainable food and drink.

The transaction will expand Tate & Lyle’s offering in its large (US$19 billion7) and fast-growing (6% CAGR) speciality food and beverage ingredients addressable market, and unlocks further growth opportunities in its core and adjacent markets. 

It will accelerate R&D and innovation through the combination of world-class scientific, technical and applications expertise, driving the development of new plant-based ingredients and solutions.

The combination is underpinned by a shared purpose, values and culture, and a mutual belief in Tate & Lyle’s commitment to science, solutions and society.

In a press release from CP Kelco, its president Didier Viala, said: “For more than 90 years, CP Kelco has served as an innovation partner for companies of all sizes and in more than 100 countries, leveraging our multi-functional, nature-based ingredients across a variety of product formulation challenges and opportunities,” said Didier Viala, President of CP Kelco. “By joining forces with Tate & Lyle, we can create an ingredient innovation powerhouse—one that’s truly committed to meeting consumer and market needs with a unique portfolio of sustainable solutions and our deep technical and applications expertise.”

Nick Hampton, Chief Executive of Tate & Lyle said “A combination with CP Kelco is the perfect fit with Tate & Lyle’s growth-focused strategy and purpose. Together, we will have a compelling customer proposition. With our leading portfolio of speciality ingredients and a world-class team of food science experts, we will be uniquely placed to provide our customers with the solutions they need to meet growing consumer demand for healthier, tastier and more sustainable food and drink. The growth potential of the proposed combined business is significant and we look forward to the future with confidence and excitement.”

Read the news from Tate & Lyle

Read the news from CP Kelco

(Photo source: Getty Images)