Tate & Lyle, a leading supplier of food and beverage ingredients, has acquired CP Kelco, a US-based manufacturer of nature-based specialty ingredients, for USD 1.8 billion.

CP Kelco produces ingredients like pectin, a fiber found in fruits and vegetables, and citrus fiber, derived from citrus peels and marketed as a 'clean label' product. These ingredients cater to consumer preferences for natural, recognizable, and simpler ingredient lists.

The acquisition aligns with Tate & Lyle's strategic shift toward a healthier portfolio, as consumer demand for clean-label, natural, and healthier ingredients continues to grow. By combining their offerings, Tate & Lyle aims to provide comprehensive solutions for product formulations, such as sweetener solutions with pectin or gums for mouthfeel and stabilization.

Analyst QuickTake: Tate & Lyle has made several acquisitions of a similar nature in the past to bolster its alternative ingredients portfolio. These include the acquisition of Nutriati , a developer and producer of plant-based protein, and Sweet Green Fields , a leading global stevia solutions business.