Consumer

Tate & Lyle Buys Ingredient Maker CP Kelco for $1.8 Billion

  • UK ingredients maker snaps up US rival in bid to lead market
  • JM Huber, owner of CP Kelco, to hold 16% stake in Tate & Lyle
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Tate & Lyle Plc agreed to buy CP Kelco, a US maker of specialty ingredients, for $1.8 billion in a move it said will create a global food and beverage supply company.

The British company saidBloomberg Terminal Thursday that it will pay $1.15 billion in cash and issue 75 million new Tate & Lyle shares to CP Kelco’s parent, JM Huber Corp. As part the deal Huber will become a long-term investor in Tate & Lyle with a stake of about 16%.