Tate & Lyle makes major $1.8 billion acquisition move for CP Kelco ingredients
Tate & Lyle at Gulfood Manufacturing. Pic: Neill Barston
A major acquisition deal has been confirmed by Tate & Lyle Ltd, as it extends its portfolio considerably in a $1.8 billion complete purchase of US-headquartered CP Kelco, a specialist supplier of pectin-based gums, reports Neill Barston.
As the business explained, the move for the firm, which is based in Atlanta, Georgia, is anticipated to provide a cornerstone of accelerated growth of up to 4-6% in the year ahead, and provides an extensive range of additional healthier-option product ranges at its disposal.
The deal includes CP Kelco U.S.; CP Kelco China; and CP Kelco ApS together with each of their respective subsidiaries, which have specialisms in a number of segments including confectionery, and bakery markets, (together ‘CP Kelco’), with the transaction forming part of the group’s strategy to hone its focus on speciality food and beverage solutions, including for the confectionery and snacks sector.
According to the company, the transformation has included a much sharper focus on customers and key categories, increased investment in innovation and solution selling capabilities, and the significant strengthening of its Sweetening, Mouthfeel and Fortification platforms through new product development and acquisitions. This transformation was completed with the announcement on 23 May 2024 of the proposed sale of Tate & Lyle’s remaining interest in Primary Products Investments LLC (‘Primient’).
Nick Hampton, CEO of Tate & Lyle (pictured below), said: “A combination with CP Kelco is the perfect fit with Tate & Lyle’s growth-focused strategy and purpose. It significantly strengthens our Sweetening, Mouthfeel and Fortification platforms, enhances our solutions capabilities across our four core categories, and unlocks new growth opportunities. Together, we will have a compelling customer proposition. With our leading portfolio of speciality 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.
“We’ve been collaborating with CP Kelco on innovation projects for many years and are very aware of their excellent products and the outstanding capabilities of their people. We are excited about the opportunities the combination will create for customers across the world, and the opportunities for employees in both companies to develop their careers across a broader global business.
“Following on from the announcement of the proposed sale of our remaining interest in Primient last month, the proposed combination with CP Kelco represents a significant acceleration of our growth-focused strategy. It creates a leading, global speciality food and beverage solutions business, ideally placed to benefit from the structural trends towards more plant-based, clean-label and sustainable ingredients and solutions. The growth potential of the proposed combined business is significant and we look forward to the future with confidence and excitement.”
Didier Viala, President, CP Kelco also welcomed the deal. He added: “We are delighted to be joining with Tate & Lyle to create a leading and differentiated speciality food and beverage solutions business. CP Kelco and Tate & Lyle are both highly customer-focused businesses with a shared passion for science and innovation. With our complementary portfolio and deep technical expertise, we will bring new value to our customers and new opportunities for our employees. This is an exciting time for our combined businesses.”
