Ingredion Makes $3.7 Billion Play for Tate & Lyle
U.S. ingredients giant Ingredion Inc. has made a $3.7 billion offer to buy Tate & Lyle, a $2.3 billion in sales UK food ingredients company specializing in sweeteners and texturizers, two of Ingredion’s key categories.
Tate & Lyle’s website acknowledged the offer, saying its shareholders could receive “up to 615 pence ($8.32) for each Tate & Lyle share through a combination of 595 pence in cash … and the right to receive a final dividend for the financial year ended 31 March 2026 of up to 13 pence … and an interim dividend for the six months to 30 September of up to 7 pence per Tate & Lyle share.”
The proposal values Tate & Lyle at about 2.74 billion pounds ($3.70 billion), according to Reuters news service.
Ingredion made no announcement of the offer, but Tate & Lyle said, “The proposal follows a number of earlier approaches from Ingredion to the Board regarding a possible offer for Tate & Lyle.”
Tate & Lyle is a bit in debt following its November 2024 acquisition of CP Kelco, a large texturants business, from J.M. Huber Corp. for $1.8 billion.
Apparently British law requires Ingredion to make a firm and public offer for Tate & Lyle by June 11 or to withdraw this offer.
Tate & Lyle became a global powerhouse when it bought American ingredients company A.E. Staley Manufacturing Co.in 1988. A.E. Staley in 1919 formed a company football team that evolved into the Chicago Bears, and Staley is credited with helping to create the National Football League.
About the Author
Dave Fusaro
Editor in Chief
Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.