Tate & Lyle targets for US private equity takeover

Tate & Lyle may become the latest London-listed company to leave the market, after being identified as a potential target by the US private equity firm Advent International.

Advent is preparing a bid to acquire the FTSE 250 Company, reports news. Its shares rose by 62p or 8.3 percent to close at $807p. Tate & Lyle and Advent declined to comment.

In recent years, the American company has acquired a number London-listed firms, including Cobham International (the defence group) and Ultra Electronics (the aerospace specialist).

Tate & Lyle began in 1859 when Henry Tate, a Liverpool-based sugar refiner and sugar merchant, formed a partnership with John Wright. The group brought sugar cubes into Britain in 1875 and opened a sugar refinery in Silvertown in east London. In 1921, they merged with Abram Lyle & sons, another London-based sugar company.

Splenda, the sweetener it launched in 1976, was made with sucralose. In 2010, the group sold its last sugar operation.

Tate & Lyle is reorganizing the group to provide healthier products. In June , the company announced that it had purchased the ingredients supplier CP Kelco. This purchase secured access to the range of products available from this supplier which enhance the texture of food. CP Kelco provides pectin and specialty gums, as well as other natural ingredients that can be used to thicken food such as jam.

In recent years, the consumer’s shift to healthier and more ethical consumption habits has driven a number mergers and acquisitions. Mars, the confectionary giant , acquired Hotel Chocolat last year for £534m, citing its “deep commitment” towards ethical trading. Carlsberg, a Danish brewer that produces non-alcoholic beverages, bid for Britvic, the UK owner Robinsons squash earlier this year. This was in response to the trend of younger consumers to consume less alcohol.

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