Ingredion strikes US$5 billion deal to acquire Tate & Lyle and create global specialty ingredients giant

Ingredion has announced a recommended all-cash acquisition of Tate & Lyle in a deal valued at approximately £3.7 billion (US$5.0 billion), bringing together two of the food industry's best-known ingredient suppliers and significantly expanding Ingredion's specialty ingredients platform.

• Ingredion announced a recommended all-cash acquisition of Tate & Lyle valued at approximately £3.7 billion (US$5.0 billion).
• The transaction combined complementary ingredient portfolios spanning texturants, sugar reduction, sweetening, mouthfeel and fortification solutions.
• Completion remained subject to shareholder, court and regulatory approvals and was expected during the second half of 2027.

The proposed transaction would combine Ingredion's capabilities in texture and sugar reduction with Tate & Lyle's expertise in mouthfeel, sweetening and fortification, creating a larger global supplier serving food and beverage manufacturers across more than 120 countries.

Ingredion reported that the acquisition would strengthen its ability to help customers respond to growing demand for healthier, affordable and functional food products while broadening its reach across a wider range of applications and end-use categories.

The Chicago-area ingredient supplier said the deal would also expand its technical capabilities in multi-ingredient systems, recipe development and customer-led formulation, areas that have become increasingly important as manufacturers seek integrated solutions rather than individual ingredients. "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," said Jim Zallie, Chairman, President & CEO of Ingredion. "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."

The acquisition would further extend Ingredion's global footprint by bringing together complementary supply networks across the Americas, Europe, the Middle East and Africa, and Asia-Pacific. According to the company, the larger combined network would enable faster, more reliable and more cost-effective delivery of ingredients and solutions to customers worldwide.

Ingredion also highlighted the opportunity to combine intellectual property, technology platforms and scientific expertise developed by both companies over more than a century of operation. The company said the transaction would strengthen its ability to develop systems-based solutions across mouthfeel, sweetening and fortification while accelerating innovation.

For Tate & Lyle, the deal follows a multi-year transformation that has shifted the business toward specialty food and beverage ingredients aligned with consumer demand for healthier and more sustainable products.

David Hearn, Chair of Tate & Lyle, said the company had undergone significant change in recent years. "Over the last few years, Tate & Lyle has been successfully repositioned as a leading global specialty food and beverage solutions business aligned to growing consumer demand for healthier, more nutritious and sustainable food and drink."

He added: "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 financial terms of the transaction include an offer of 595 pence per share for Tate & Lyle shareholders, representing an approximately 59% premium to the company's closing share price on May 13, 2026. Shareholders would also remain entitled to receive a final dividend for the financial year ended March 31, 2026, as well as an interim dividend for the six-month period ending September 30, 2026, subject to stated limits.

Ingredion planned to fund the acquisition through a combination of existing cash resources, new debt financing and, if required, a committed bridge financing facility.

The company said the integration was expected to generate approximately US$130 million in annual run-rate net cost synergies by the end of 2030. Achieving those savings was expected to require approximately US$175 million in one-time costs over the same period.

Ingredion also reported that the acquisition was expected to be accretive to adjusted earnings per share in the first year following completion and to strengthen the long-term growth profile of the combined business.

The proposed acquisition has already received unanimous approval from Ingredion's board of directors. Tate & Lyle's board said it intended to unanimously recommend that shareholders vote in favor of the transaction.

Ingredion also secured an irrevocable undertaking from Huber Equity Corporation to support the deal. The commitment covers 75 million Tate & Lyle shares, representing approximately 16.8% of the company's issued share capital as of June 5, 2026.

The transaction will be implemented through a court-sanctioned scheme of arrangement under UK law, subject to approval by Tate & Lyle shareholders, court sanction and the satisfaction or waiver of regulatory and antitrust conditions.

Completion is expected in the second half of 2027.

If approved, the acquisition would create one of the world's largest specialty ingredient providers, combining Ingredion's 2025 annual net sales of approximately US$7.2 billion with Tate & Lyle's specialty ingredients portfolio focused on sweetening, mouthfeel and fortification technologies.