Tate & Lyle (U.K.) will acquire CP Kelco (Atlanta, GA) from J.M. Huber Corporation for $1.8 billion. The proposed combination will create a leading and differentiated global specialty food and beverage solutions business.
Huber and Tate & Lyle have entered into an agreement by which Huber will continue to stay invested in CP Kelco through a shareholding of about 16 percent in the combined Tate & Lyle and CP Kelco holding company Tate & Lyle PLC, following completion of the transaction. In addition, Huber will hold two seats on its Board of Directors. The transaction is expected to close later this year after approval by Tate & Lyle’s shareholders and customary regulatory clearances and closing conditions are met.
Combining CP Kelco’s nature-based, specialty ingredient solutions for stabilization and texture with Tate & Lyle’s sweetening, mouthfeel and fortification platforms will enhance both companies’ capabilities across multiple product categories and unlock new growth opportunities, according to the companies. Further, CP Kelco’s expertise and offerings in consumer care and industrial applications will provide the combined entity with the potential to grow in additional, attractive end-markets.
“For more than 90 years, CP Kelco has served as an innovation partner for companies of all sizes and in more than 100 countries, leveraging our multi-functional, nature-based ingredients across a variety of product formulation challenges and opportunities,” said Didier Viala, CP Kelco president. “By joining forces with Tate & Lyle, we can create an ingredient innovation powerhouse—one that’s truly committed to meeting consumer and market needs with a unique portfolio of sustainable solutions and our deep technical and applications expertise.”
“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,” said Nick Hampton, chief executive of Tate & Lyle. “With our leading portfolio of specialty ingredients and a world-class team of food science experts, we will be uniquely placed to provide our customers with the solutions they need to meet growing consumer demand for healthier, tastier and more sustainable food and drink. The growth potential of the proposed combined business is significant and we look forward to the future with confidence and excitement.”
For more information, visit www.tateandlyle.com or www.cpkelco.com.
