Tate & Lyle (TATE) Business Combination summary

Deal rationale and strategic fit

• The acquisition creates a global leader in specialty food and beverage solutions, accelerating transformation toward growth-focused, health-driven markets and enhancing leadership in sweetening, mouthfeel, and fortification.

• Combines highly complementary portfolios, expanding offerings in beverage, dairy, soups/sauces/dressings, and bakery/snacks, and strengthens R&D and innovation capabilities.

• Deepens presence in fast-growing markets across Asia, Middle East, Africa, and Latin America, with 35% of combined revenue from these regions.

• Shared purpose, values, and culture, with a strong commitment to sustainability, science, and social impact.

• Addresses a $19 billion specialty ingredients market growing at 6% CAGR.

Financial terms and conditions

• Total consideration is $1.8 billion: $1.15 billion in cash, 75 million new shares to Huber valued at up to $645 million, and up to 10 million additional shares as deferred consideration based on share price performance two years post-completion.

• Headline consideration represents 10x CP Kelco's 2023 adjusted EBITDA, including run-rate cost synergies.

• Cash portion funded by new and existing debt facilities, a $600 million bridge facility, and a $300 million term loan.

• Huber will become a long-term shareholder (~16%) and can appoint up to two non-executive directors.

• Share buyback program of $270 million to commence immediately.

Synergies and expected cost savings

• Targeted run-rate cost synergies of at least $50 million by the end of the second full financial year post-completion, with 50–60% realized in the first year.

• Revenue synergies targeted at up to 10% of CP Kelco’s revenue over the medium term.

• Cost to deliver synergies estimated at $75 million, front-loaded in year one.