Ingredion announced a recommended all-cash acquisition of Tate & Lyle in a transaction valued at approximately £3.7 billion ($5 billion), creating a scaled global provider of specialty ingredient solutions focused on healthier, tastier, and more sustainable food products. The announcement was detailed in the company’s release.
The acquisition combines two complementary businesses with expertise across texturants, sugar reduction, mouthfeel, sweetening, fortification, and recipe development. Ingredion said the combination will strengthen its specialty ingredients platform and enhance its ability to meet evolving consumer demands for nutritious, affordable, and high-quality food and beverages.
The combined company will bring together complementary geographic supply networks across the Americas, Europe, the Middle East and Africa, and Asia Pacific, enabling faster and more cost-effective delivery of ingredient solutions to customers worldwide. Ingredion said the transaction will also expand its formulation capabilities and accelerate innovation through the combination of intellectual property, technology, and scientific expertise from both organizations.
Under the terms of the deal, Tate & Lyle shareholders will receive 595 pence per share, representing a premium of approximately 59% to the company’s closing share price on May 13, 2026. Ingredion expects the transaction to generate annual run-rate net cost synergies of approximately $130 million, with full realization anticipated by the end of 2030. The company also expects the acquisition to be accretive to adjusted earnings per share in the first year following completion.
Ingredion plans to finance the acquisition through a combination of cash resources, new debt financing, and a committed bridge financing facility. Following completion, the company expects net leverage to be approximately three times net debt-to-adjusted EBITDA and plans to reduce leverage to approximately 2.5 times within 18 months. Completion of the transaction is expected in the second half of 2027, subject to shareholder approvals, court sanction in the United Kingdom, and regulatory clearances.
The boards of both companies have approved the transaction, and Tate & Lyle’s board intends to unanimously recommend that shareholders vote in favor of the deal. Ingredion has also secured an irrevocable undertaking from Huber Equity Corporation, representing approximately 16.8% of Tate & Lyle’s outstanding shares, to support the acquisition.
KEY QUOTES:
“Combining Ingredion and Tate & Lyle’s complementary portfolios establishes a global leader in ingredient solutions with the innovation expertise and geographic reach that will help create the future of food. The combined business will be better positioned to serve customers’ needs for the development of great-tasting, healthier and affordable food products that consumers demand. This compelling combination will create exciting new possibilities for employees and generate significant value for all stakeholders.”
Jim Zallie, Chairman, President And CEO, Ingredion
“Over the last few years, Tate & Lyle has been successfully repositioned as a leading global specialty food and beverage solutions business aligned to growing consumer demand for healthier, more nutritious and sustainable food and drink. I would like to recognise the exceptional contribution of the team at Tate & Lyle for their talent, insight and commitment which has been a key driver of this transformation and the business we have built. Looking forward, 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. The Board of Tate & Lyle believes Ingredion’s offer represents an attractive opportunity for shareholders to crystalise value in cash, and that it will be an excellent steward of Tate & Lyle. The Board therefore unanimously recommends Ingredion’s offer to Tate & Lyle’s shareholders.”
David Hearn, Chair, Tate & Lyle
