US ingredient maker Ingredion is to acquire British counterpart Tate & Lyle for around £3.7 billion ($5 billion) in cash.
The Westchester, Illinois firm will pay £0.595 per share for 100% of Tate & Lyle equity with investors entitled to receive up to an additional £0.20 per share in dividends.
Completion of the acquisition is expected to take place in the second half of 2027.
Tate & Lyle is one of the oldest listed companies in the UK, starting off as a sugar refiner in the late 19th century before focusing on alternative ingredients in recent years.
In 2024, Tate & Lyle bought CP Kelco, a leader in speciality gums and pectins, for $1.8 billion to boost its products that improve food texture.
Ingredion said the acquisition broadens its speciality ingredients platform across texturants, sugar reduction, and fortification, adding complementary capabilities in multi-ingredient systems and recipe development.
“Combining Ingredion and Tate & Lyle’s complementary portfolios establishes a global leader in ingredient solutions with the innovation expertise and geographic reach that will help create the future of food,” said Jim Zallie, chairman, president and CEO of Ingredion.
“The combined business will be better positioned to serve customers’ needs for the development of great-tasting, healthier and affordable food products that consumers demand,” he added.
David Hearn, chair of Tate & Lyle said: “Over the last few years, Tate & Lyle has been successfully repositioned as a leading global speciality food and beverage solutions business aligned to growing consumer demand for healthier, more nutritious and sustainable food and drink.
“Looking forward, we believe the next chapter with Ingredion will create a business with even greater potential, greater scale, and increased investment in innovation in support of customers.”
