Tate & Lyle to acquire food ingredients maker CP Kelco

The British food ingredient maker Tate & Lyle has agreed to acquire CP Kelco, a producer of pectin, natural gums, and other food ingredients, in a transaction valued at about $1.8 billion. The seller is family-owned J.M. Huber, which acquired Kelco about 20 years ago. Huber will become a 16% shareholder in the enlarged Tate & Lyle. Kelco’s annual sales of about $770 million will boost Tate & Lyle’s revenues by almost 40%. Tate & Lyle says Kelco’s products, which enhance mouth feel, will complement the sugars and starches in its portfolio.