Tate & Lyle has announced a significant acquisition and financial strategy. The UK-based sweetener maker will buy U.S.-based CP Kelco from J.M. Huber for approximately $1.8 billion (£1.4 billion). The proposed transaction is expected to complete in Q4 of 2024 and is anticipated to be accretive to earnings. Tate & Lyle targets run-rate cost synergies of at least $50 million by the end of the second full fiscal year post-completion. Additionally, Tate & Lyle will shortly commence a share buyback programme of up to £215 million, starting on June 20, 2024, and ending on or before March 31, 2025. The company's existing approach to capital allocation and dividends will remain unchanged.
Tate & Lyle to Buy CP Kelco From Huber for $1.8 Billion https://t.co/NRpSctkCNl
Tate & Lyle agrees to buy CP Kelco, a US maker of specialty ingredients, for $1.8 billion https://t.co/LomMhlHKtH
UK's sweetener maker Tate & Lyle to buy U.S.-based CP Kelco for $1.8 bln https://t.co/94yvSNHYJe https://t.co/YQbMujFNLK
⚠️ TATE & LYLE - **WILL SHORTLY COMMENCE A SHARE BUYBACK PROGRAMME OF UP TO £215 MLN **BUYBACK WILL COMMENCE ON 20 JUNE AND WILL END ON OR BEFORE 31 MARCH 2025
⚠️ TATE & LYLE - **PROPOSED TRANSACTION IS EXPECTED TO COMPLETE IN Q4 OF 2024 CALENDAR YEAR **TARGETED RUN-RATE COST SYNERGIES OF AT LEAST US$50 MLN BY END OF SECOND FULL FY POST-COMPLETION. **NO CHANGE TO TATE & LYLE'S EXISTING APPROACH TO CAPITAL ALLOCATION AND DIVIDEND…
That’s a sweet deal… *TATE & LYLE TO BUY CP KELCO FROM J.M. HUBER FOR ABOUT £1.4B
⚠️ TATE & LYLE - PROPOSED DEAL FOR TOTAL IMPLIED CONSIDERATION OF US$1.8 BLN **TATE & LYLE PROPOSED TRANSACTION ACCRETIVE TO EARNINGS **TATE & LYLE: ENTERED AGREEMENT TO ACQUIRE ENTIRE ISSUED SHARE CAPITAL OF CP KELCO