Food producer Tate & Lyle PLC announced on Thursday its plan to acquire U.S.-based nature-based ingredients maker CP Kelco from JM Huber Corp. in a cash and share deal valued at $1.8 billion. The acquisition aims to leverage the growing demand for plant-based and clean ingredients.
Tate & Lyle $1.8B CP Kelco Deal :Details of the Acquisition
Tate & Lyle has entered into an agreement to purchase CP Kelco’s operations in the U.S., China, and Denmark. CP Kelco is known for producing pectin, specialty gums, and products derived from lily pads and seaweed.
The British company will pay $1.15 billion in cash and issue 75 million new shares to Huber, valued at approximately $645 million. This transaction will give Huber a 16% stake in Tate & Lyle, entitling it to appoint two nonexecutive directors to Tate & Lyle’s board.
Tate & Lyle $1.8B CP Kelco Deal : Legal and Financial Advisors
Linklaters LLP is serving as legal adviser to Tate & Lyle. The team is led by Simon Branigan, global head of corporate, along with corporate partners Lisa Chang and Namrata Shah. They are supported by managing associate Ellie Tayler and associate Cassandra Smith.
