US private equity investor Advent International is exploring a potential takeover of Tate & Lyle, potentially worth several billion pounds.
- The proposed acquisition is still in its early stages, but it is anticipated to surpass Tate & Lyle’s current market value of £3.2 billion.
- Tate & Lyle is simultaneously in the process of acquiring US ingredients maker CP Kelco for £1.4 billion.
- A recent shareholder vote on the Tate & Lyle-CP Kelco deal was postponed due to new Financial Conduct Authority regulations.
- Tate & Lyle’s CEO emphasized the strategic benefits of merging with CP Kelco, highlighting growth opportunities.
Advent International is reportedly preparing a multi-billion pound bid for Tate & Lyle, a prominent player in the food and beverage sector. This potential acquisition is still in preliminary planning stages but is expected to exceed Tate & Lyle’s market value of approximately £3.2 billion. This move underscores Advent International’s strategy to strengthen its footprint in the food industry, building on its extensive portfolio.
As Advent explores this acquisition, Tate & Lyle is progressing with its own strategic purchase of CP Kelco. The company has earmarked £1.4 billion for this acquisition, aligning with its strategy to enhance its core capabilities in sweetening, mouthfeel, and fortification. These expansions are intended to foster a strong value proposition for its clients and broaden its market reach.
Earlier this month, Tate & Lyle decided to delay a shareholder vote concerning its acquisition of CP Kelco. The postponement was in response to updated rules by the Financial Conduct Authority, which affected the timing and regulatory requirements of the deal.
Tate & Lyle’s CEO, Nick Hampton, articulated that the acquisition with CP Kelco would accelerate the company’s growth strategy. He mentioned that the merger would greatly amplify Tate & Lyle’s offerings in its primary business areas and open new growth avenues. Hampton elaborated, “A combination with CP Kelco is the perfect fit with Tate & Lyle’s growth-focused strategy and purpose. It significantly strengthens our Sweetening, Mouthfeel and Fortification platforms, enhances our solutions capabilities across our four core categories, and unlocks new growth opportunities. Together, we will have a compelling customer proposition.”
The prospective deals signal significant strategic developments for both Advent International and Tate & Lyle in the competitive food and beverage industry.
