Private equity giant eyes Tate & Lyle in multi-billion pound takeover bid
US private equity investor Advent International is understood to be preparing a multi-billion takeover bid for food and beverage supplier Tate & Lyle.
Preparations for the acquisition are in its early stages but it is thought it will exceed the ingredient company’s £3.2bn market value, reported the Financial Times.
The takeover approach also comes amid Tate & Lyle’s own acquisition process, as it aims to complete its £1.4bn purchase of US ingredients maker CP Kelco.
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Earlier this month, it chose to vetoed a shareholder vote on the deal in response to new Financial Conduct Authority rules.
Tate & Lyle CEO Nick Hampton said the deal would accelerate growth when he unveiled the acquisition in June.
He said: “A combination with CP Kelco is the perfect fit with Tate & Lyle’s growth-focused strategy and purpose.
“It significantly strengthens our Sweetening, Mouthfeel and Fortification platforms, enhances our solutions capabilities across our four core categories, and unlocks new growth opportunities. Together, we will have a compelling customer proposition.”
