Ingredion To Buy Tate & Lyle In $5 Bln Cash Deal, Stock Climbs

(RTTNews) - U.S. food ingredients maker Ingredion Inc. (INGR) announced on Monday that it has agreed to buy British sweetener and food solutions firm Tate & Lyle Plc (TATE.L) in an all-cash deal that values Tate & Lyle at 3.7 billion pounds or $5.00 billion.

On the LSE, shares of Tate & Lyle were gaining 13.25 percent, changing hands at 556.50 pence.

In pre-market activity on NYSE, shares of Ingredion were up 1.95 percent, trading at $101.93, after closing Friday's regular session 0.52 percent higher.

Under the terms, Tate & Lyle shareholders will receive 595 pence per share in cash, a 59 percent premium to the company's closing price on May 13.

The company will also be entitled to a final dividend of up to 13.2 pence per share for the year ended March 31, 2026 and an interim dividend of up to 6.8 pence per share for the six months ending Sept 30.

The deal combines Ingredion's business in texture and sugar reduction with Tate & Lyle's expertise in sweetening, mouthfeel and fortification.

Ingredion expects the transaction to deliver annual run-rate cost savings of $130 million by the end of 2030, with one-time costs to achieve the savings of about $175 million.

The acquisition is expected to add to adjusted earnings per share in the first year after completion.