LONDON – Tate & Lyle PLC is acquiring CP Kelco, Atlanta, from the J.M. Huber Corp. for approximately $1.8 billion. CP Kelco is a manufacturer of such ingredients as carrageenan, citrus fiber, pectin, refined locust bean gum, xanthan gum and others.
Huber and Tate & Lyle have entered into an agreement by which Huber will continue to stay invested in CP Kelco through a shareholding of about 16% in the combined Tate & Lyle and CP Kelco holding company Tate & Lyle PLC, following completion of the transaction. In addition, Huber will hold two seats on its board of directors.
“A combination with CP Kelco is the perfect fit with Tate & Lyle’s growth-focused strategy and purpose,” said Nick Hampton, chief executive officer of Tate & Lyle. “It significantly strengthens our sweetening, mouthfeel and fortification platforms, enhances our solutions capabilities across our four core categories, and unlocks new growth opportunities.”
The transaction is expected to close later this year after approval by Tate & Lyle’s shareholders and customary regulatory clearances and closing conditions are met.
“We are delighted to be joining with Tate & Lyle to create a leading and differentiated specialty food and beverage solutions business,” said Didier Viala, president of CP Kelco. “CP Kelco and Tate & Lyle are both highly customer-focused businesses with a shared passion for science and innovation. With our complementary portfolio and deep technical expertise, we will bring new value to our customers and new opportunities for our employees. This is an exciting time for our combined businesses.”
