Tate & Lyle announces that it has entered into an agreement to acquire the entire issued share capital of CP Kelco U.S.; CP Kelco China; and CP Kelco ApS together with each of their respective subsidiaries (together ‘CP Kelco’), a leading provider of pectin, speciality gums and other nature-based ingredients, from J.M. Huber Corporation for a total implied consideration of US$1.8 billion (approximately £1.4 billion)¹, on a cash-free, debt-free basis (the ‘Proposed Transaction’).

Over the last six years, Tate & Lyle has been executing a major strategic transformation to become a growth-focused speciality food and beverage solutions business aligned to attractive structural and growing consumer trends for healthier, tastier and more sustainable food and drink. This 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’).

The Proposed Transaction significantly accelerates Tate & Lyle’s strategy to be a leading and differentiated speciality food and beverage solutions business, and to become the solutions partner of choice for customers. It is expected to drive stronger revenue growth and significant adjusted EBITDA margin improvement over the next few years. It is also expected to be accretive to adjusted earnings per share, including cost synergies only, in the second full financial year following completion, and strongly accretive thereafter.

For further information please visit: www.tateandlyle.com

¹Based on GBP: USD foreign exchange rate of £1:$1.2723, as at 5pm BST on 19 June 2024.

Strong customer demand & market potential are key drivers behind new production line

CP Kelco, a global leader of nature-based ingredient solutions, has completed a USD 60 million expansion in production capacity for its citrus fiber product line, based on strong customer demand and market potential. With this significant expansion, the company has ample capacity to support current and future customers’ citrus fiber supply needs.

The production line expansion for NUTRAVA^® and KELCOSENS™ Citrus Fiber in the company’s facility in Matão, Brazil, increases the total capacity to approximately 5000 MT, establishing CP Kelco as a leading citrus fiber supplier to food, beverage and consumer product manufacturers worldwide. This expansion provides options to incrementally expand capacity even further in the future based on customer needs.

Launched in 2019, CP Kelco’s citrus fiber products are highly versatile and unique ingredients upcycled from citrus peels, a byproduct of the juicing industry. With the continued growth in consumer demand for clean-label, sustainable products, citrus fiber addresses the need for nature-based and easily recognisable ingredients in a variety of food, beverage and personal care products.

NUTRAVA^® Citrus Fiber supports dietary fiber intake and offers unique water-binding, texturising and stabilisation capabilities in a wide range of food and beverage applications, from condiments, dressings and soups to bakery goods, dairy and plant-based products. In personal care products, KELCOSENS^™ Citrus Fiber serves as a gentle emulsifier alternative, providing stabilisation and a light skin feel to help product developers create SENSational textures, from serums to gels and luxe creams.