Tate & Lyle, a UK-based food and beverage company with over 160 years of history, announced plans to acquire CP Kelco, a seller of pectin, specialty gums, and other natural ingredients, for approximately $1.8 billion. This strategic move underpins Tate & Lyle’s aim to focus on healthier, tastier, and more sustainable food solutions by leveraging CP Kelco’s expertise. Despite initial investor concerns resulting in a drop in share prices, industry experts view the acquisition as a potentially shrewd decision, contingent on precise execution. The deal is expected to generate revenue synergies of up to 10% of CP Kelco’s revenue and to benefit from cost savings through the consolidation of operations. Tate & Lyle has reassured stakeholders by continuing its share buyback program, indicating confidence in their financial stability. The acquisition complements Tate & Lyle’s recent sale of its 49.7% stake in Primient for $350 million and aligns with its long-term strategy to focus on specialty food and beverage solutions. The deal is anticipated to be finalized by the end of 2024, and investor sentiment will largely depend on successful integration and realization of projected synergies.

Food and Beverage, Specialty Ingredients,United Kingdom, Global