Tate & Lyle acquires CP Kelco, deal worth US$1.8 Billion

UK – Tate & Lyle has acquired CP Kelco for US$1.8 billion, operating on a cash-free, debt-free basis. 

This acquisition marks a significant expansion into the rapidly growing specialty ingredients market, valued at US$19 billion and experiencing a robust 6% compound annual growth rate.

Tate & Lyle, a storied British company founded in 1859 as Henry Tate & Sons, has evolved significantly since its acquisition by American Sugar Refining, Inc. in 2010. 

Once known for its refined sugar products, the company has redirected its focus towards health-conscious and sustainable food solutions. 

Its current offerings include innovative sugar-reduction alternatives for a variety of products, from gummies to protein bars and beverages.

The acquisition of CP Kelco aligns with Tate & Lyle’s strategic vision of meeting increasing consumer demand for healthier and more sustainable food and beverage options. 

According to CEO Nick Hampton, “Our expanded portfolio of specialty ingredients and our team of experts in food science position us to uniquely address the evolving needs of our customers. We are committed to providing solutions that cater to the growing market for better-for-you food and drink.”

CP Kelco, a leader in nature-based ingredients with over 85 years of industry experience, enhances Tate & Lyle’s capabilities with its diverse range of plant-based and fermentation-derived ingredients. 

The company’s product lineup includes pectin, gellan gum, xanthan gum, and carrageenan—key components for sugar reduction and stabilizing food products. 

CP Kelco also contributes fermentation-derived cellulose and the innovative NUTRAVA Citrus Fiber, which is sourced from sustainable citrus peels.

As part of the deal, J.M. Huber Corporation, CP Kelco’s former parent company, will retain a 16% stake in the newly formed entity and secure two board seats, ensuring ongoing influence and collaboration.

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