US ingredient solutions company Ingredion has announced a recommended all-cash offer to acquire London-listed Tate & Lyle PLC in a deal that values the business at approximately £3.7 billion ($5 billion).
The transaction, structured as a court-sanctioned scheme of arrangement under UK company law, is subject to approval by Tate & Lyle shareholders, court sanction, and antitrust clearances, with completion expected in the second half of 2027.
“We believe the next chapter with Ingredion will create a business with even greater potential”
Jim Zallie, chairman, president and CEO of Ingredion, said, “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.”
A combined ingredients platform
Ingredion serves customers in more than 120 countries and reported 2025 annual net sales of approximately $7.2 billion. Tate & Lyle, which has operated for over 120 years, posted revenue from continuing operations of £2.0 billion for the year ended March 31, 2026.
The deal brings together two complementary ingredient portfolios. Ingredion’s existing capabilities in texturants and sugar reduction would be combined with Tate & Lyle’s expertise in mouthfeel, sweetening, and fortification, including its Splenda sucralose brand and its range of functional systems used in beverages, bakery, and snacks.
Ingredion expects the deal to generate approximately $130 million in annual cost savings by the end of 2030, with integration costs estimated at around $175 million over the same period. The acquisition is expected to boost earnings per share in the first full year following completion.
Financing and leverage
Ingredion intends to fund the acquisition through a combination of existing cash and new debt financing. The company expects to reduce its debt load to a comfortable level within 18 months of completion.
David Hearn, chair of Tate & Lyle, said the board unanimously recommends the offer to shareholders: “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.”
