Tate & Lyle confirms £2.7bn takeover by US rival
Tate & Lyle has accepted a £2.7bn takeover deal by a rival American food firm, in the latest flight of a historic brand from London’s stock market.
The 123-year old business said Ingredion’s offer – which totals 615p per share – represents an “attractive opportunity for shareholders”.
The deal comes after the company revealed another “disappointing” set of results, as it battles with slowing consumer demand.
The ingredients firm is well-known for its golden syrup brand but offloaded the rights to its sugar business in 2010, and has since expanded its ingredients and flavourings business.
Announcing its board’s unanimous approval of the deal, Tate & Lyle said the operating environment for the firm and its customers “has deteriorated” in recent years, “with consumer sentiment weakening across all major regions”.
The company revealed a three per cent drop in revenue in October, and had been attempting to reverse this decline through a $200m cost-cutting drive.
Tate & Lyle faces uncertain outlook
Tate & Lyle said on Monday it is “confident” in its strategic direction, but “the continuation of the current challenging market environment creates risks and uncertainties”.
The firm said its new owner will be an “excellent steward” of the company and will allow the business to reach “greater potential [and] greater scale”.
Tate & Lyle was created in 1921, after the sons of rival sugar refiners Henry Tate and Adram Lyle merged their fathers’ firms following their deaths. It has been listed in London since 1938.
In 2024, the firm spent $1.8bn (£1.4bn) on pectin and gum business CP Kelco, in a bid to position itself as a “leader in mouthfeel [and] a critical driver of customer solutions”.
Ingredion’s offer includes 595p in cash per share, plus a more-than 13p final dividend for the last full financial year and a 6.8p interim dividend for the six months since March.
London firms face takeover swoops
David Hearn, Tate & Lyle’s chairman, said: We believe the next chapter with Ingredion will create a business with even greater potential, greater scale, and increased investment in innovation in support of customers.”
Jim Zallie, chairman of Ingredion, said the new combined business will “be better positioned to serve customers’ needs for the development of great-tasting, healthier and affordable food products that consumers demand”.
New York-listed Ingredion produces starches, sweeteners and pea protein for the food, beverage, brewing and pharmaceutical industries.
Ingredion says the takeover will broaden its global platform, enhance its brand recognition and establish total combined revenue of $9.9bn.
The deal marks the latest exit of a historic brand from London’s stock exchange, and comes as a number of other listed giants – like Intertek and Easyjet – face takeover pressure.