Ingredion offers to buy Tate & Lyle

Ingredion Incorporated, a US-based global provider of ingredient solutions to the food and beverage and industrial segments, has announced an offer for the acquisition of Tate & Lyle PLC, a UK-based specialist in sweetening and fortification ingredients. The transaction offer implies a total enterprise value of approximately £3.7bn.

The acquisition will bring together two complementary ingredients businesses, broadening Ingredion’s specialty ingredients platform across texturants, sugar reduction and fortification, and adding capabilities in multi-ingredient systems and recipe development. The combined group will have an expanded geographic supply network across the Americas, Europe, the Middle East and Africa, and Asia–Pacific.

“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. This compelling combination will create exciting new possibilities for employees and generate significant value for all stakeholders.”

Commenting on the announcement, David Hearn, chair of Tate & Lyle, said: “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. The Board of Tate & Lyle believes Ingredion’s offer represents an attractive opportunity for shareholders to crystallise value in cash, and that it will be an excellent steward of Tate & Lyle. The Board therefore unanimously recommends Ingredion’s offer to Tate & Lyle’s shareholders.”

Under the terms of the transaction, it has been reported that Tate & Lyle shareholders will receive 595 pence per share.

Ingredion said it intends to finance the acquisition through a combination of existing cash resources, new debt financing and, to the extent required, a drawdown on a fully committed bridge financing facility.

Completion of the acquisition is expected to take place in the second half of 2027, subject to the satisfaction of various conditions — including, among others, approval by Tate & Lyle shareholders, sanction of the Scheme by the High Court of Justice in England and Wales (the “Court”), and the satisfaction or waiver of the antitrust conditions.

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