Transaction to be paid in cash, shares (Il Sole 24 Ore Radiocor) - London, 20 Jun - The UK food and beverage ingredient supplier Tate & Lyle said that it has entered into an agreement to acquire the entire issued share capital of CP Kelco US, CP Kelco China and CP Kelco ApS together from JM Huber Corporation in cash and shares, representing a total implied consideration of 1.8 billion dollars (approximately 1.4 billion pounds), on a cash-free, debt-free basis.

CP Kelco is a provider of pectin, speciality gums, and other nature-based ingredients.

Tate & Lyle will pay 1.15 billion dollars (905 million pounds) in cash from new and existing debt facilities and cash resources. It will also issue of 75 million new ordinary shares to Huber with an implied value of 645 million dollars (510 million pounds).

The deal includes a deferred consideration of up to 10 million additional Tate & Lyle ordinary shares to be delivered to Huber approximately two years post-completion of the transaction, subject to performance criteria based on Tate & Lyle's share price.

"The proposed transaction significantly accelerates Tate & Lyle's strategy to be a leading and differentiated speciality food and beverage solutions business, and to become the solutions partner of choice for customers. It is expected to drive stronger revenue growth and significant adjusted EBITDA margin improvement over the next few years. It is also expected to be accretive to adjusted earnings per share, including cost synergies only, in the second full financial year following completion, and strongly accretive thereafter," the company added.

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(RADIOCOR) 20-06-24 08:54:12 (0166) 5 NNNN