US private equity firm Advent International is reportedly poised to make a multi-billion-pound bid for Tate & Lyle, a prominent player in the food and beverage supply industry.
Reportedly, Advent International’s proposed bid is intended to surpass Tate & Lyle’s current market valuation of £3.2 billion, according to sources cited by the Financial Times. However, the process remains in its infancy.
This development coincides with Tate & Lyle’s ongoing acquisition efforts, particularly its pursuit of US ingredients maker CP Kelco for £1.4 billion. Chief Executive Nick Hampton emphasised the strategic fit of this acquisition, asserting that it would “accelerate growth.” He added, “A combination with CP Kelco is the perfect fit with Tate & Lyle’s growth-focused strategy and purpose,” highlighting enhancements in their Sweetening, Mouthfeel, and Fortification platforms.
Earlier this month, Tate & Lyle opted to delay a shareholder vote on the CP Kelco deal, in response to new regulations introduced by the Financial Conduct Authority. This cautious approach underscores the complexities of negotiating simultaneous high-value acquisitions.
The potential acquisition by Advent suggests a strategic vision that aligns with Tate & Lyle’s growth ambitions, promising to enhance their capabilities across core categories and unlock new opportunities.
Advent International’s interest in Tate & Lyle represents a significant potential shift in the landscape of the global food and beverage supply sector. As both parties navigate their respective acquisition strategies, the outcomes could redefine their competitive positions in the industry.
