Tate & Lyle has entered into an agreement to acquire the entire issued share capital of CP Kelco US, China, ApS — as well as their subsidiaries.
CP Kelco, a global provider of pectin, gums and other natural ingredients will be acquired from Huber for USD $1.8bn on a cash-free, debt-free basis.
Tate & Lyle's strategic expansion in the natural ingredients space
During the last six years, Tate & Lyle has been strategically transforming its business facilitate growth in its reach into the speciality food and beverage solutions market.
This change has involved the company taking a sharper focus on customers and key categories, increased efforts into innovations, as well as the strengthening of its sweetening platforms through both product development and acquisitions.
From this acquisition, Huber will become a long-term shareholder in Tate & Lyle following completion, meaning the company can appoint two non-executive directors to the Tate & Lyle board.
This could also allow Huber to participate in future value creation, if it so desires.
Chief Executive of Tate & Lyle, Nick Hampton said: “A combination with CP Kelco is the perfect fit with Tate & Lyle’s growth-focused strategy and purpose. It significantly strengthens our Sweetening, Mouthfeel and Fortification platforms, enhances our solutions capabilities across our four core categories and unlocks new growth opportunities.”
“We’ve been collaborating with CP Kelco on innovation projects for many years, and we are excited about the opportunities the combination will create for customers across the world.”
