Ingredion Inc.: Offer for Tate Recommended by Board

Research evidence excerpt

Ingredion Inc.: Offer for Tate Recommended by Board

Barclays | Ingredion Inc.

The Proposed "New" Ingredion

Combined Financials

Ingredion management outlined the combined financials of the two companies, totaling

~$9.9bn in revenue and adj. EBITDA of ~$1.8bn for LTM 1Q26, a margin of 18.1% without

factoring in synergies at the revenue or cost level. The deal would be margin-accretive for INGR

upon close and would allow the company to focus further on its clean label, sugar reduction,

and protein/fiber fortification products. Management also highlighted that the combined

company would have faster speed-to-market as it expands the internal data library, digital

capabilities, and co-creation portal.

FIGURE 1. For illustrative purposes, INGR & Tate Key Metrics

In US$mn INGR Tate & Lyle Illustrative Combined

Sales 7,200 2,700 9,900

Adj. EBITDA 1,200 569 1,800

Margin 16.9% 21.1% 18.1%

Adj. Op Income 967 386 1,400

Margin 13.4% 14.3% 13.7%

Capex 451 168 619

LTM 1Q26, no synergies included in combined figures

Source: Company Reports, Barclays Research

Zooming in on revenues, all of Tate's sales would be moved into INGR's Texture & Healthful

Solutions segment, the company's growth focus that includes higher-margin, more specialized

products. Management believes the combined portfolio would expand capabilities in

sweeteners, fortification (protein and fiber) and texturants. In addition, the deal would expand

the broad range of starches and clean label ingredients. We also note that a majority of Tate's

revenues (50%) are from the Americas and in the Mouthfeel segment (66%).

FIGURE 2. INGR and Tate Revenue Breakdown (in US$bn, LTM 1Q26)

12.0

9.9

10.0 0.5

8.0 7.2 2.0

0.5

6.0 2.3 2.0

4.0

2.3

5.1

2.0

2.4

0.0

INGR Combined

T&HS F&II - LatAm F&II - US/CAN Other