Tate & Lyle PLC on Tuesday said that the integration of CP Kelco Ltd is progressing smoothly, with the two companies now operating as a single business unit since April 1.
Tate is a London-based company which supplies food and beverage products to food and industrial markets. It noted that its 2025 financial year results, as well as its fourth-quarter results, are expected to be in line with existing guidance.
In June 2024, Tate bought pectin and gums business CP Kelco for $1.8 billion.
‘We are confident in delivering the targeted run-rate cost synergies of US$50 million by the end of the 2027 financial year, and for more than 50% of these to be delivered by the end of the 2026 financial year,’ the firm added.
Excluding CP Kelco, Tate also expects its 2025 financial revenue to decline by 5%. Earnings before interest, taxes, depreciation, and amortization are expected to be 4% higher.
Tate has said it will release its full-year financial 2025 results on May 22.
Chief Executive Nick Hampton said: ‘Notwithstanding the uncertain macroeconomic environment, we are confident in the medium-term growth potential of the business we have created and are focused on delivering the benefits of the combination with CP Kelco and accelerating topline growth.’
Tate shares rose 4.4% to 525.50 pence in London on Tuesday afternoon.
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