US ingredients giant, Ingredion, has made a conditional all-cash proposal to acquire British rival Tate & Lyle in a deal that would value the company at approximately $5.2 billion (£2.74 billion).
Tate & Lyle’s board confirmed it had received the proposal and that it followed several earlier approaches from Ingredion. Under the terms of the proposal, Tate & Lyle shareholders would receive up to $11.60 per share (£6.15), comprising $11.20 (£5.95) in cash and the right to receive two ordinary course dividends totalling up to 37 cents (20 pence) per share.
In a separate filing to the US Securities and Exchange Commission, Ingredion confirmed the approach and said it believed a potential transaction “would deliver significant benefits to customers, consumers, employees and Ingredion shareholders”.
The proposed price of £5.95 per share represents a premium of around 64 per cent to Tate & Lyle’s closing share price of $7.05 (£3.74) prior to the announcement.
The companies are in discussions, and Ingredion is conducting due diligence, but Tate & Lyle’s board has cautioned there is no certainty any offer will be made, nor as to the final terms on which any offer might be made.
Tate & Lyle supplies texture, sweetening, and fortification ingredients to the global food and beverage manufacturing industry. Its 2024 acquisition of specialty hydrocolloids business CP Kelco for around £1.4 billion expanded its position in pectin and specialty gums.
The company has projected revenue of approximately £2.12 billion for the year ending March 2025, though it flagged in February 2026 that revenue and earnings for fiscal 2026 were expected to decline by low single-digit percentages amid softness in key markets including North America.
For Ingredion, a deal would significantly broaden its ingredients portfolio. The NYSE-listed company reported net sales of approximately US$7.2 billion for 2025 and employs more than 12,000 people across around 120 countries.
It has been investing heavily in texture and mouthfeel capabilities, including more than US$100 million in an Indiana manufacturing facility. A Tate & Lyle acquisition would also add sweeteners including stevia and sucralose to its portfolio.
The potential deal comes amid broader consolidation in the specialty ingredients sector. Tate & Lyle’s own recent acquisition of CP Kelco positioned it as a stronger competitor in mouthfeel and texture; the same segment Ingredion has identified as a core growth area.
