For more than a century, Tate & Lyle helped put sugar on the table. Now, Ingredion, a global supplier of ingredients to food and beverage manufacturers, has agreed to pay $3.6 billion for the U.K.-based business.
The ingredients company, which is headquartered in Illinois, announced the all-cash acquisition on Monday. The offer places Tate & Lyle’s equity at roughly $3.6 billion and the overall transaction at approximately $5 billion, including debt. Together, the companies are projected to generate approximately $9.9 billion in annual revenue.
In 2010, after selling off its eponymous sugar brand, Tate & Lyle pivoted to focus on artificial sweeteners, something that Ingredion appears ready to tap into, drawing on consumers’ desire for lower-calorie products.
The deal is a bet on a trend reshaping grocery aisles: less sugar, more protein and fiber, and little tolerance for changes in flavor.
