Tate & Lyle targeted for US private equity takeover

Tate & Lyle could become the latest company to quit the London stock market after it emerged as a possible target for the US private equity firm Advent International.
Advent is in the early stages of preparing a bid for the FTSE 250 company, according to the Financial Times, lifting its shares by 62p, or 8.3 per cent, to close at 807p. Advent and Tate & Lyle declined to comment.
The American firm has bought a number of London-listed companies in recent years including Cobham International, the defence group, and Ultra Electronics, the aerospace specialist.
Tate & Lyle was formed when Henry Tate, a sugar merchant, went into partnership with John Wright, a Liverpool sugar refiner, in 1859. The group introduced sugar cubes to Britain in 1875, and opened a refinery in Silvertown, east London, before merging with another London sugar business, Abram Lyle & Sons, in 1921.
The company diversified into corn starch in the 1970s and used sucralose to launch its sweetener brand Splenda in 1976. The group moved out of the sugar business when it sold the last of its sugar operations in 2010.
Tate & Lyle has been moving ahead with restructuring the group towards healthier options. The company announced the purchase of the ingredients supplier CP Kelco for $1.8 billion in June to secure access to its range of products which improve the texture of foods. CP Kelco is a provider of pectin, specialty gums and other natural ingredients, which can be used as low-sugar alternatives to additives that can thicken foods such as jam.
The consumer shift towards healthier and more ethical consumer habits has been driving a number of mergers and acquisitions deals in recent years. Mars, the confectionary conglomerate, swooped on Hotel Chocolat with a £534 million deal last year, citing the UK company’s “deep commitment” to ethical trading. Carlsberg, the Danish brewer, sought to expand its portfolio of non-alcoholic drinks with its bid for Britvic, the UK owner of Robinsons squash, earlier this year, as it responds to a trend towards moderation amongst younger customers.