TATE & LYLE : Ingredion acquires Tate

Research evidence excerpt

TATE & LYLE : Ingredion acquires Tate

EQUITIES

CONSUMER INGREDIENTS

TATE & LYLE OUTPERFORMPRICE* 491p  TARGET PRICE 595p (UPSIDE 21%)

TATE & LYLE ADR OUTPERFORMPRICE* USD26.5  TARGET PRICE USD31.7 (UPSIDE 20%)

FLASH NOTE

Ingredion acquires Tate

8 JUNE 2026 Securities Research Report Production time: 08:12* (London time)

Research Analyst & Publishing Entities

Joan Lim BNP Paribas London Branch +(44) 207 039 9410 joan.lim@uk.bnpparibas.com

What happened?

Following the possible offer on 14 May (see TATE & LYLE: Takeover interest from Ingredion), Ingredion announced

today that they have reached an agreement to acquire Tate for an all cash offer of GBp595 plus 2 dividends of GBp20.

This implies a cash consideration of GBP2.7bn with an implied EV of GBP3.7bn (USD5.0bn). The cash consideration

implies a pre-synergy FY26 EV/EBITDA multiple of 8.8x.

The initial unsolicited proposal from Ingredion was for GBp530 with 80% cash and 20% shares of Ingredion, which the

Board felt was not an appropriate valuation and four further proposals from Ingredion followed.

Tate’s Board unanimously recommends the Acquisition, and Huber has also issued an irrevocable undertaking to vote

in favour of the deal.

The combined Group will represent approx. USD9.9bn of sales, adj EBITDA of USD1.8bn. Cost synergies of approx.

USD130m are expected to be fully realised by the end of 2030, with 60% from SG&A and 40% from COGS.

The acquisition is expected to be accretive to adj. EPS by more than 15% in the first full fiscal year following the effective

date.

Pro forma net debt/EBITDA is approx. 3x at effective date, decreasing to approx. 2.5x within 18 months.

The deal is expected to complete during H2 2027. Ingredion will take all necessary steps to satisfy the regulatory