Tate & Lyle buying CP Kelco in US$1.8B deal to seize on plant-based and sustainable trends
(Image credit: CP Kelco).21 Jun 2024 --- Tate & Lyle seeks to expand in the lucrative plant-based and clean ingredients space with its plan to buy CP Kelco in a deal worth US$1.8 billion.
The move aims to create a global specialty food and beverage solutions business. CP Kelco also expects the merger to open new growth opportunities, especially in consumer care and industrial applications.
After the deal, CP Kelco’s parent company, J.M. Huber will hold a 16% stake in Tate & Lyle. The transaction is subject to regulatory approvals and is expected to close in final quarter of this year.
Seizing on sweet trends
CP Kelco believes combining its stabilization and texture solutions with Tate & Lyle’s sweetening and fortification platforms will expand its capabilities across various product categories.
Nick Hampton, CEO of Tate & Lyle, says: “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.
“The growth potential of the proposed combined business is significant and we look forward to the future with confidence and excitement.”
CP Kelco believes the deal could also create career opportunities for employees in both companies. “This transaction represents an exciting new chapter for our business and our people,” comments Didier Viala, president of CP Kelco.
The combined entity aims to leverage both companies’ expertise to meet the growing demand for healthier, tastier and more sustainable food and drink solutions.
