Ingredients group Tate & Lyle posts positive outlook after major CP Kelco acquisition

Tate & Lyle plc has issued a key trading update underlining positive momentum for the business following its £1.4 billion ($1.8bn) move to acquire CP Kelco pectin and speciality gums company, reports Neill Barston.

As the company noted its major investment notably enhances its strategy as a leading and differentiated speciality food and beverage solutions business, and the solutions partner of choice for customers.

In relation to its major acquisition, the company confirmed that CP Kelco’s financial performance in the first half of the 2024 calendar year has stabilised as anticipated, with volume well ahead of the comparative period.

Moreover, the company observed a significant shift in financial policy that after an announcement by the Financial Conduct Authority on 11 July 2024, new Listing Rules will come into effect on 29 July 2024, the requirement for a shareholder vote for significant transactions – such as its latest deal will no longer apply.

As reported earlier this month, the ingredient group has unveiled its latest release for the confectionery sector with its Optimizer Stevia 8.10, which is designed as a high quality sweetener for gummies and nutrition bars, with a taste profile that has been forged to be a close replica to sugar.

As the business explained, its latest premium range builds upon its expertise in the segment, with the company previously revealing that the wider industry has continued to make significant strides with improving product flavour profiles within the market.

Chief Executive Nick Hampton asserted that the business was in an improved position for the second half of 2024. He said: ““We have made a good start to the new financial year with trading in line with our expectations.  It’s encouraging to see volume momentum across the business, and we continue to expect volume growth to accelerate as the 2025 financial year progresses.  Planning for the integration of Tate & Lyle and CP Kelco is progressing well with both organisations excited about the opportunity to deliver significantly greater value for customers and the growth potential of the combined business.  We look forward to the future with confidence.”