Ingredion plans to acquire ingredients counterpart Tate & Lyle for a reported $3.6 billion, company officials announced Monday.
The buyout, which would value U.K.-based Tate & Lyle at about $5 billion including debt, is scheduled to close in the second half of next year, subject to approval by Tate & Lyle shareholders, clearance by antitrust authorities and other closing conditions. Ingredion’s board has signed off on the deal, and Tate & Lyle officials are expected to call for shareholder approval.
Ingredion officials said that the move would broaden its specialty ingredients platform and add complementary capabilities in recipe development and “multi-ingredient systems.” The deal would also combine complementary supply networks across the globe.
“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,” Ingredion Chairman, President and CEO Jim Zallie said in a statement. “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.”
“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,” added Tate & Lyle Chair David Hearn.
