The board-approved deal would combine Ingredion’s texture and sugar reduction expertise with Tate & Lyle’s strengths in mouthfeel, sweetening and fortification.
Ingredion has agreed the terms of a recommended £2.7 billion acquisition of Tate & Lyle in a deal that would create a larger global ingredients business.
The boards of both companies have reached agreement on the cash transaction, under which Ingredion will acquire the entire issued and to-be-issued ordinary share capital of Tate & Lyle. Tate & Lyle’s Board has unanimously recommended the offer to shareholders, while Ingredion’s Board has unanimously approved the deal.
The companies said the acquisition would combine complementary ingredient portfolios, technical expertise and global supply networks, strengthening their ability to help food and beverage manufacturers develop healthier, affordable products without compromising on taste, texture or quality.
Combining Ingredion and Tate & Lyle’s complementary portfolios establishes a global leader in ingredient solutions with the innovation expertise and geographic reach that will help create the future of food.”
Jim Zallie, chairman, president and CEO of Ingredion
Combining complementary expertise
Ingredion and Tate & Lyle said the combined business would bring together expertise in texture, sugar reduction, mouthfeel, sweetening and fortification, while expanding support for customers across North America, Europe, Asia-Pacific and emerging markets. The companies expect the transaction to accelerate innovation, broaden formulation capabilities and improve speed-to-market for new products.
“Combining Ingredion and Tate & Lyle’s complementary portfolios establishes a global leader in ingredient solutions with the innovation expertise and geographic reach that will help create the future of food,” said Jim Zallie, chairman, president and CEO of Ingredion.
“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.”
The acquisition would expand Ingredion’s speciality ingredients platform across texturants, sugar reduction and fortification while adding Tate & Lyle’s capabilities in multi-ingredient systems and recipe development. Together, the companies aim to deliver more integrated ingredient solutions and strengthen collaboration with customers from concept development through to commercialisation.
Ingredion said the enlarged business would draw on combined intellectual property, technology, talent and applications expertise to support the development of next-generation ingredient systems. The company added that it would strengthen its ability to develop systems-based solutions across mouthfeel, sweetening and fortification, including solutions that support healthier food and beverage products.
Board-backed deal moves towards 2027 completion
Commenting on the agreement, David Hearn, Chair of Tate & Lyle, said: “Over the last few years, Tate & Lyle has been successfully repositioned as a leading global speciality food and beverage solutions business aligned to growing consumer demand for healthier, more nutritious and sustainable food and drink.
“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. The Board of Tate & Lyle believes Ingredion’s offer represents an attractive opportunity for shareholders to crystalise value in cash, and that it will be an excellent steward of Tate & Lyle. The Board therefore unanimously recommends Ingredion’s offer to Tate & Lyle’s shareholders.”
Under the terms of the agreement, Tate & Lyle shareholders will receive 595 pence per share in cash, representing an approximate 59 percent premium to the company’s closing share price on 13 May 2026. Shareholders will also remain entitled to receive a final dividend for the financial year ended 31 March 2026 and an interim dividend for the six months ending 30 September 2026, subject to the terms of the transaction.
Ingredion expects the integration to generate annual run-rate net cost synergies of approximately $130 million by the end of 2030. The company also expects the acquisition to enhance the long-term growth profile and earnings potential of the combined group.
The companies expect to complete the acquisition in the second half of 2027, subject to shareholder, court and regulatory approvals.
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