U.S. food ingredients maker Ingredion Inc. (INGR) announced on Monday that it has agreed to buy British sweetener and food solutions firm Tate & Lyle Plc (TATE.L) in an all-cash deal that values Tate & Lyle at 3.7 billion pounds or $5.00 billion.
On the LSE, shares of Tate & Lyle were gaining 13.25 percent, changing hands at 556.50 pence.
In pre-market activity on NYSE, shares of Ingredion were up 1.95 percent, trading at $101.93, after closing Friday's regular session 0.52 percent higher.
Under the terms, Tate & Lyle shareholders will receive 595 pence per share in cash, a 59 percent premium to the company's closing price on May 13.
The company will also be entitled to a final dividend of up to 13.2 pence per share for the year ended March 31, 2026 and an interim dividend of up to 6.8 pence per share for the six months ending Sept 30.
The deal combines Ingredion's business in texture and sugar reduction with Tate & Lyle's expertise in sweetening, mouthfeel and fortification.
Ingredion expects the transaction to deliver annual run-rate cost savings of $130 million by the end of 2030, with one-time costs to achieve the savings of about $175 million.
The acquisition is expected to add to adjusted earnings per share in the first year after completion.
Ingredion said it would fund the deal with cash, new debt and, if needed, a bridge facility. It expects net leverage of about 3.0 times net debt to adjusted EBITDA at close and plans to reduce that to 2.5 times within 18 months.
The acquisition, to be implemented via a UK court-sanctioned scheme of arrangement, is expected to close in the second half of 2027, subject to shareholder and regulatory approvals.
J.P. Morgan is financial adviser to Ingredion and Hogan Lovells is legal counsel.
Goldman Sachs and Greenhill are joint lead financial advisers to Tate & Lyle, with Bank of America and Citi as joint financial advisers and Linklaters as legal counsel.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.