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Tate & Lyle has announced plans to acquire the hydrocolloid and pectin supplier, CP Kelo, in a what is the formula for iron(ii) acetatedeal worth $1.8 billion. On 20 June, London-headquarterferrous fumarate vs iron tabletsed Tate & Lyle announced plans to acquire the entire issued share capital of CP Kelco US, CP Kelco China, and CP Kelco ApS together with each of their respective subsidiaries for a total of $1.8 billion (around £1.4 billion) on a cash-free, debt-free basis.CP Kelco’s product portfolio is made up of texturising ingredients including citrus fibre, gellan gum, pectin, carrageenan, xanthan gum, diutan gum, fermentation-derived cellulose, refined locust bean gum, and microparticulated whey protein concentrate.Tate & Lyle said the acquisition was part of its strategic transformation to become a business that was aligned with “attractive structural and growing consumer trends for healthier, tastier and more sustainable food and drink”. Part of this would be achieved by significantly strengthening its sweetening, mouthfeel and fortification platforms through new product development and acquisitions, it added.The deal is set to expand Tate & Lyle’s offering in its already large and fast-growing addressable market for specialty food and drink ingredients, worth $19 billion and enjoying a 6% compound annual growth rate (CAGR), it said. The global ingredient supplier said it expected the acquisition to drive stronger revenue growth and significant adjusted margin improvement for EBITDA (earnings before interest, taxes, depreciation, and amortization) over the next few years.Following the sale, the owner of CP Kelco – US-headquartered J.M. Huber Corporation – will become a long-term shareholder (around 16%) in Tate & Lyle and will be entitled to appoint two non-executive directors to the Tate & Lyle Board. “The potential for Huber to become a long-term shareholder and participate in the future value creation from the combination of the two businesses was central to unlocking a transaction,” said Tate & Lyle in a statement.Nick Hampton, CEO of Tate & Lyle said the combination with CP Kelco was “the perfect fit” with Tate & Lyle’s growth-focused strategy and purpose. “It significantly strengthens our Sweetening, Mouthfeel and Fortification platforms, enhances our solutions capabilities across our four core categories, and unlocks new growth opportunities. Together, we will have a compelling customer proposition. With our leading portfolio of speciality ingredients and a world-class team of food science experts, we will be uniquely placed to provide our customers with the solutions they need to meet growing consumer demand for healthier, tastier and more sustainable food and drink.Hampton added: “We’ve been collaborating with CP Kelco on innovation projects for many years and are very aware of their excellent products and the outstanding capabilities of their people. We are excited a200 mg ferrous fumaratebout the opportuferrous gluconate good or badnities the combination will create for customers across the world, and the opportunities for employees in both companies to develop their careers across a broader global business.”Didier Viala, president of CP Kelco said the acquisition would create a leading and differentiated speciality food and beverage solutions business. “CP Kelco and Tate & Lyle are both highly customer-focused businesses with a shared passion for science and innovation,” Viala said. “With our complementary portfolio and deep technical expertise, we will bring new vaferrous fumarate 900 mglue to our customers and new opportunities for our employees. This is an exciting time for our combined businesses.”
Tate & Lyle to acquire CP Kelco in $1.8bn deal
