Tate & Lyle (LSE:TATE) shares rose 12.3% to 552p in Monday morning's trade after Ingredion agreed a recommended 595p cash takeover.
Tate & Lyle is a speciality food and beverage solutions business focused on sweetening, mouthfeel and fortification, with around 5,000 employees in 75 locations across 37 countries after its strategic reshaping since 2022.
The cash consideration values Tate & Lyle's equity at approximately £2.7bn with an implied enterprise value of c.£3.7bn (and c.£3.8bn including Permitted Dividends), and the announcement says the package implies around 8.8-9.1x adjusted EBITDA on the disclosed bases.
Shareholders will receive 595p cash per Tate & Lyle share and the Permitted Dividends will be paid in line with Tate & Lyle's ordinary dividend timetable without reducing the cash consideration.
Ingredion has secured irrevocable undertakings covering approximately 76.2m Tate & Lyle shares, around 17.1% of the register, including 75m shares from Huber Equity Corporation, and director undertakings.
The acquisition is intended to be effected by a court‑sanctioned scheme of arrangement, subject to shareholder approval, material antitrust and other customary conditions, and is expected to become Effective in the second half of 2027.
Ingredion says the combination would create a scaled specialty ingredients platform with pro forma revenue of $9.9bn and adjusted EBITDA of $1.8bn, deliver c.$130m of run‑rate cost synergies by end‑2030 at one‑off costs of c.$175m, and be accretive to adjusted EPS by more than 15% in the first full fiscal year.
Ingredion expects pro forma net debt to adjusted EBITDA of approximately 3.0x at the Effective Date, reducing to c.2.5x within 18 months, and says it will prioritise debt paydown while preserving an investment‑grade rating.
