Tate & Lyle completes acquisition of CP Kelco

UK – Tate & Lyle PLC has announced the completion of its acquisition of CP Kelco, a global supplier of pectin, specialty gums, and other natural ingredients. 

The deal, finalized on November 15, 2024, involves the purchase of CP Kelco U.S., CP Kelco China, and CP Kelco ApS, along with their subsidiaries, from J.M. Huber Corporation.

The acquisition aligns with Tate & Lyle’s strategy to expand its presence in the specialty ingredients market, valued at US$19 billion and growing at an annual rate of 6%. 

The company has been shifting its focus toward health-oriented and sustainable food solutions, moving away from its historic role as a sugar refiner.

Nick Hampton, Tate & Lyle’s Chief Executive Officer, stated that the acquisition marks the beginning of a transformative phase for the company. 

He emphasized the growth opportunities presented by CP Kelco’s portfolio and welcomed the addition of CP Kelco’s employees, customers, and partners.

The agreement grants Huber, the previous owner of CP Kelco, the right to appoint two non-executive directors to Tate & Lyle’s board. 

Glenn M. Fish, Huber’s Executive Vice President and Chief Financial Officer, and Cláudia Vaz de Lestapis, Huber’s Executive Vice President and General Counsel, have been named to these roles, effective immediately.

As part of the transaction, Tate & Lyle issued 75 million new ordinary shares to Huber, giving the corporation a 16% stake in the company. 

Applications have been made for the shares to be listed on the London Stock Exchange, with trading expected to commence on November 18, 2024.

Founded in 1859, Tate & Lyle has undergone significant evolution since its acquisition by American Sugar Refining, Inc. in 2010. 

The company now specializes in solutions for sugar reduction and the production of healthier food options such as low-calorie snacks and beverages.

CP Kelco’s addition to Tate & Lyle brings expertise in plant-based and fermentation-derived ingredients, further enhancing the company’s ability to cater to growing consumer demand for sustainable food solutions. 

With over 85 years of experience, CP Kelco’s integration is seen as a step toward meeting the evolving needs of global food and beverage markets.

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