>>> US After Hours Summary: SRPT +36.4% on FDA expanding approval; RYAN +6.7% to

After Hours Summary: SRPT +36.4% on FDA expanding approval; RYAN +6.7% to join S&P MidCap 400; SWBI -4.7% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: None

Companies trading higher in after hours in reaction to news: SRPT +36.4% (announces expanded FDA approval of ELEVIDYS to DMD patients), CLOV +9.7% (Director bought $1 mln in shares), RYAN +6.7% (to join S&P MidCap 400), ASAN +3.2% (authorizes new $150 mln share repurchase program; also reaffirms Q2 and FY25 rev guidance), NG +2.7% (names new CFO), TREE +1.7% (hackers appear to be selling consumer data stolen from TREE's QuoteWizard on a cloud database hosted by SNOW, according to Bloomberg), OII +1.2% (secures large contract with domestic independent energy co), NBR +0.5% (provides Q2 update), DDOG +0.2% (launches Data Jobs Monitoring), GENI +0.2% (names new Chair of the Board), RKLB +0.2% (deploys satellites for Kinéis), OKLO +0.1% (stock offering by selling shareholders), JNJ +0.1% (submits applications to FDA seeking approval of TREMFYA for Crohn's disease), CLW +0.1% (to invest $23 mln in new tissue converting line), LMT +0.1% (awarded $283 mln U.S. Missile Defense Agency contract),

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: SWBI -4.7%, ASTL -1.7%,

Companies trading lower in after hours in reaction to news: GEO -1.5% (announces discontinuation of contract with the Oklahoma Dept of Corrections), ARR -0.9% (files for 11,671,257 shares of common stock), DFS -0.4% (files mixed shelf securities offering), DAL -0.3% (increases dividend), SNOW -0.2% (hackers appear to be selling consumer data stolen from TREE's QuoteWizard on a cloud database hosted by SNOW, according to Bloomberg), INDI -0.1% (CFO taking temporary medical leave of absence),

WWD : LVMH Has Gobbled Up Legendary Paris Bistrot L’Ami Louis

LVMH Has Gobbled Up Legendary Paris Bistrot L’Ami Louis
The tiny restaurant with huge portions — and prices — has fed the likes of Marlene Dietrich, Bill Clinton, Johnny Depp and, of course, Bernard Arnault.

Topping up its far-flung hospitality holdings with a Paris institution, LVMH Moët Hennessy Louis Vuitton has acquired Chez L’Ami Louis, a tiny bistrot with an outsized reputation, portions and prices.

Financial terms were not disclosed, but it is understood LVMH plans to preserve its unique character as the eatery marks its centenary this year.

Once described by The New York Times as a “small, shabby place with peeling brown walls and shaky chairs,” L’Ami Louis has fed many famous diners over the years, including Marlene Dietrich, who used to show up at noon on Sundays before it opened so she could enjoy a quiet, if filling, lunch.

French President Jacques Chirac hosted his American counterpart Bill Clinton there in 1999, while Hollywood habitués included Tim Burton, Francis Ford Coppola, Brad Pitt and Johnny Depp.

More recently, Spanish singer Rosalía tried out the restaurant’s burgundy snails, which swim in garlic butter, and plopped raspberries on her fingertips for an Instagram op.

It also seems to be a place where rivalries evaporate: Luxury titans Bernard Arnault and François Pinault are among local regulars.

Famous for its thick slabs of foie gras, roast chicken finished with goose fat and butter, and other French classics, L’Ami Louis also boasts a cellar of almost 20,000 bottles.

The restaurant falls under the LVMH Hospitality Excellence division, which recently added the Orient Express brand to its portfolio, and announced ambitious plans to add more trains, sailing ships and hotels under that iconic brand.

In recent years, LVMH has significantly widened its footprint in the hospitality sector with its acquisition of luxury travel operator Belmond Ltd., owner of the Venice Simplon-Orient-Express train and hotels including the Copacabana Palace in Rio de Janeiro and the Hotel Cipriani in Venice, for $2.6 billion in cash. Cheval Blanc hotels and Cova cafés are among its other properties.

Its flagship fashion and leather goods brands Dior and Louis Vuitton have also added more eateries to their flagship stores in key metropolitan cities.

In a brief release, LVMH called L’Ami Louis an “authentic Parisian gem” that “built its reputation around the generosity of its dishes and the exceptional quality of its ingredients. Produce is sourced from small breeders and market gardeners who have been loyal to the restaurant for several generations.”

The French group said it would “work alongside the existing teams to preserve the unique character and family identity of the restaurant and continue to support its French savoir-faire and expertise.”

FT : The Centre Pompidou prepares for a controversial revamp

The Centre Pompidou prepares for a controversial revamp
A five-year overhaul of the cultural complex will open up new subterranean spaces but is arousing heated debate


The Centre Pompidou in Paris was intended to be a building embodying change and transformation. A response to the street protests and the radicalism of 1968, it represented an idea of a less elitist, more accessible culture: open, public, responsive and novel. It embraced high and low arts; the avant garde and pop; performance, a public library and a panoply of new media. It has now become, however, like the Louvre, a heavily protected national monument, a heritage building.

The Pompidou was also never designed to last hundreds of years — it is a building of its era, heavily serviced and difficult to maintain. Its architect, Renzo Piano (who designed and built it with Richard Rogers between 1971 and 1977) originally proposed that it should be completely overhauled every 25 years.

Now nearly 50 years old, it is now about to undergo a huge transformation, its first since the 1990s and its biggest ever. An engineering project to restore the building, repair the structure, remove asbestos and update its services is scheduled to start in 2025. There is controversy over the original budget of €262mn (now looking more like €358mn), with funding as yet incomplete, and artists and cultural figures have expressed outrage at plans to close the Pompidou for five years during the renovations. However, the works will give the opportunity for a rethink of the uses of the building’s vast spaces, many subterranean and hitherto inaccessible.


An architectural competition was launched last year for this organisational and artistic reinterpretation of the cultural and administrative spaces, which was won by Paris-based architects Moreau Kusunoki with Mexican/US associate designers Frida Escobedo Studio.

While their proposals do not appear particularly radical (there will be no great changes in the appearance of the structure), they are surprisingly extensive. “The idea is to increase access, openness to the city and transparency,” says architect Nicolas Moreau. “There is a rethinking of the entrance, the sequence and the relationship to the city.”

Although it looks similar to how it did when it opened in 1977, there have been many changes, especially an accretion of walls, barriers and security checkpoints. After increased fears of terrorism, the escalator that was once a free public spectacle in its own right was put behind security barriers, and the interiors have become progressively less open over the years. 

“We are trying to open the flow of the ground floor,” Moreau says. “The piazza outside will be made more accessible, replacing steps with a slope, while solid panels on the facade (which were intended in the original designs to be glass but became solid) are being made more transparent using new fireproof glass unavailable in the 1970s.” Additionally, the glass box that houses a replica of artist Constantin Brancusi’s atelier (designed by Piano and completed in 1997) will now house the Kandinsky library, a research facility for the centre’s vast collection of artists’ archives; the studio will move back inside the building. 


The most extensive element of the plan is the expansion of the basement levels into areas that were formerly workshops or workers’ or storage rooms, creating performance spaces, black-box galleries and two new cinemas. Architect Hiroko Kusunoki says, “Those spaces have a very different character, with no natural light, so they lend themselves to immersive media.” Overall, the plans will lead to an extra 6,600 sq m being opened up to the public (there is now 18,110 sq m of exhibition space).

“There is a world down below the building, like a city below the city,” adds Moreau. “There was even a tunnel built to transport art, but it was not built wide enough for trucks so it was never used.” (It will remain unused after the renovation.)

The library, one of the centre’s best-used and most democratic spaces, will be extensively refurbished in collaboration with Escobedo. “Over the years the space had consolidated and become more static,” she tells me, “and the idea was to open it up again and make it more porous . . . We are trying to reconfigure the library so that it becomes an archipelago of islands which can adapt — a place for a future which we don’t know yet.”

What is it like, I ask Moreau, to be working on a building so familiar and so central to the cultural life of Paris? “It’s like being a heritage architect and getting to work on Notre-Dame,” he says. “In fact they call the Pompidou the ‘Notre-Dame des Tuyaux’” — the cathedral of pipes. As the real Notre-Dame reappears after a restoration necessitated by the 2019 fire, its high-tech counterpart will disappear, perhaps for far longer, under scaffolding.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance
:
  • GMS -4.3%, WGO -4%, FNB -1.2% (guidance)
Other news:
  • DJT -10.8% (announces SEC effectiveness of Amended Form S-1)
  • HAE -8.6% (launches limited release of venous closure device)
  • VNDA -5.4% (determines that recent unsolicited takeover proposals are not in the best interests of the company and its shareholders)
  • ARBE -3% (files for 11,542,497 shares of common stock)
  • NVRI -1.9% (provides 3 year financial targets ahead of analyst meeting)
  • TNDM -1.7% (Tandem Diabetes Care and Dexcom (DXCM) amended and restated development agreement to the original development agreement)
  • HMST -1.2% (HMST shareholders approve merger with FSUN)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:
  • ACN +7%, CMC +3.5%, DRI +3%, KBH +2%, SCS +1.7%
Other news:
  • TPST +44.9% (to Report New Data from Global Randomized Combination Study of Amezalpat (TPST-1120) in First-Line Hepatocellular Carcinoma)
  • HROW +26.5% (provides TRIESENCE relaunch update)
  • EVO +10.8% (speaking with advisors as decline in share price prompts talk of takeover, according to Bloomberg)
  • ATAI +7.9% (announces update on Beckley Psytech's Phase 1/2a trial of ELE-101 )
  • SLN +7.1% (Topline 48-Week Data from Phase 2 Study of Zerlasiran in Patients with Elevated Lipoprotein)
  • VUZI +6.8% (Vuzix and Avegant Announce Strategic Partnership to Develop Optimized Optical Modules for AI-Enabled Smart Glasses)
  • VZLA +4% (Announces Receipt of Court Approval and Expected Closing Date for Vizsla Royalties Spinout)
  • OPT +3.2% (A$55.0 mln ($36.9 mln) Retail Entitlement Offer Opens)
  • GYRE +2.9% (announces publication in Journal of Gastroenterology)
  • DELL +2.9% (Elon Musk says "To be precise, Dell is assembling half of the racks that are going into the supercomputer that xAI is building" )
  • MNMD +2.7% (Announces Constructive End-of-Phase 2 Meeting with U.S. FDA for MM120 in Generalized Anxiety Disorder)
  • TREE +2.3% (names new CFO, also raises Q2 revenue guidance)
  • PHG +1.9% (completes cancellation of 4.4 million shares)
  • BTG +1.9% (announces positive preliminary economic assessment results for the Gramalote Project; after-tax NPV (5%) of $778 million with an after-tax IRR of 20.6%) LXRX +1.7% (Data From Lexicon's RELIEF-DPN 1 Phase 2 Study of LX9211 Published Today in Diabetes Care, a Peer-Reviewed Journal of the American Diabetes Association)
  • VOD +1.7% (sells 18.0% stake in Indus Towers)
  • PLTR +1.7% (has been selected by the Advanced Research Projects Agency for Health (ARPA-H) to support the agency's mission to accelerate better health outcomes) LNZA +1.6% (increases share ownership of LanzaJet )
  • SNX +1.5% (CRSR and SNX announce new partnership)
  • BG +1.5% (announces sale of its ownership share in its sugar and bioenergy joint venture in Brazil)
  • ALDX +1.4% (Announces Advancement of New RASP Modulators and Recent Preclinical Data in Obesity at 2024 Investor Roundtable)
  • PLL +1.3% (announced that additional high-grade drill results at North American Lithium in Quebec continue to demonstrate the potential for a significant upgrade to the mineral resource estimate)
  • PBR +1.2% (provides information about FPSO Maria Quitéria; signs Protocol of Intentions with the Government of Rio de Janeiro)
  • VALE +1.1% (provides update on Salobo 3 plant operations)
  • GXO +1.1% (conducting an early-stage proof-of-concept program in partnership with robot manufacturer Apptronik)

FT : Nato fund takes stake in German rocket start-up

Nato fund takes stake in German rocket start-up
Investment in Isar comes as military alliance’s European members seek to harness private sector space capabilities

Nato’s new €1bn venture fund is investing in Munich rocket microlauncher start-up Isar Aerospace as the alliance’s European member states seek to harness private sector space capabilities for security needs. 

The Nato Innovation Fund, backed by 24 countries excluding the US, Canada and France, has joined several other new investors in a £220mn series C fundraising that values Isar at roughly $1bn, according to people close to the company.

This takes the total raised since Isar was founded in 2018 by three German postgraduate students to more than $400mn. 

The company is raising the funds to build a bigger, fully automated factory near Munich, where it intends to produce at least 40 of its Spectrum rockets a year by the end of the decade, according to co-founder and chief executive Daniel Metzler. This is more than was planned just over a year ago at the start of its fundraising.

“We realised through the last year or two that the space industry has been picking up significantly,” he said. “We feel we will need more rockets rather than less.”

Military interest in space has accelerated since Russia’s invasion of Ukraine. Defence spending in the space domain last year surpassed investment in civil programmes for the first time, according to Novaspace, a market analytics group. Some 107 defence and dual-use satellites were launched in 2023 by 17 governments, Novaspace reported, up 40 per cent on 2022. 

To keep costs down, the world’s biggest space powers are emphasising greater collaboration with commercial service providers. In April, the US Department of Defense set out its commercial space integration strategy, while the EU last year also published its first “space strategy for security and defence”, calling for investment in more dual-use technologies.

Andrea Traversone, managing partner of the Nato Innovation Fund, said access to space was “critical to the technological sovereignty of Europe and the UK”. Isar offered a “promising technology”, he said, adding that the fund would help it identify government and commercial opportunities.

Metzler said the fund was “more than just an investor . . . It is a big potential customer either through Nato itself or through the individual countries”.

The Isar chief executive said military customers were expected to account for about 20-30 per cent of overall demand in the near future. However, commercial customers would still dominate at 50 per cent.

Isar is one of a handful of European rocket start-ups hoping to tap into booming demand for space-based communication and observation services. The group is attempting to replicate the success of Elon Musk’s SpaceX by doing the design, manufacture and testing of its vertical launch system in-house. 

Isar’s microlauncher will fly small and medium-sized satellites into space, with a total capacity to carry 1,000kg into low earth orbit.

Spectrum was due to fly last year but technical challenges led to delays, according to Metzler, who said the first flight was now expected to take place this year from the Andøya space port in Norway.

“We are now at the point where we are literally just waiting for a permit to do the final-stage testing of the vehicle and go into test flight,” he said. “We are ready.” However, he added that Andøya was still waiting for permits to host launches.

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • TPST +48.8%, VUZI +9.8%, VZLA +5.1%, DELL +3%, FBLG +2.4%, TREE +2.3%, ACN +2.3%, KBH +2%, BTG +1.9%, PHG +1.8%, VOD +1.8%, SCS +1.7%, AMD +1.6%, LNZA +1.6%, SNX +1.5%, MOR +1.2%, PBR +1.1%, AEM +1%, CRSR +0.9%
  • Gapping down:
    • HAE -8.6%, DJT -7.2%, VNDA -5.4%, GMS -5.4%, OPT -3.2%, ARBE -3%, FNB -1.2%, RJF -0.7%, BA -0.5%

WSJ : Antin Backs Hydrogen-Equipment Supplier GTL Leasing

Antin Backs Hydrogen-Equipment Supplier GTL Leasing
The infrastructure-focused firm committed about $100 million to the provider of bulk trailers and storage tanks

Antin Infrastructure Partners agreed to invest about $100 million and is taking a majority interest in hydrogen-equipment specialist GTL Leasing, betting the company will benefit as the market for the gas expands.

Livermore, Calif.-based GTL provides specially designed truck trailers, tanks and compressors to transport and store hydrogen and other industrial gases. Stephan Feilhauer, a partner with Antin’s NextGen infrastructure group, said GTL leases equipment to clients that include hydrogen producer Linde Engineering, telecommunications giants AT&T and Verizon Communications, and makers of hydrogen fuel-cell trucks.

WSJ : Instagram Recommends Sexual Videos to Accounts for 13-Year-Olds, Tests Sho

Instagram Recommends Sexual Videos to Accounts for 13-Year-Olds, Tests Show
Findings align with undisclosed internal research at Meta, which has pledged an ‘age-appropriate’ experience for teens; company says testing isn’t representative of their experience

Instagram regularly recommends sexual videos to accounts for teenagers that appear interested in racy content, and does so within minutes of when they first log in, according to tests by The Wall Street Journal and an academic researcher.

The tests, run over seven months ending in June, show that the social-media service has continued pushing adult-oriented content to minors after parent Meta Platforms META -1.41%decrease; red down pointing triangle said in January that it was giving teens a more age-appropriate experience by restricting what it calls sensitive content including sexually suggestive material.

Separate testing by the Journal and Laura Edelson, a computer-science professor at Northeastern University, used similar methodology, involving setting up new accounts with ages listed as 13. The accounts then watched Instagram’s curated video stream, known as Reels.

Instagram served a mix of videos that, from the start, included moderately racy content such as women dancing seductively or posing in positions that emphasized their breasts. When the accounts skipped past other clips but watched those racy videos to completion, Reels recommended edgier content.

Adult sex-content creators began appearing in the feeds in as little as three minutes. After less than 20 minutes watching Reels, the test accounts’ feeds were dominated by promotions for such creators, some offering to send nude photos to users who engaged with their posts.

Similar tests on the short-video products of Snapchat and TikTok didn’t produce the same sexualized content for underage users.

“All three platforms also say that there are differences in what content will be recommended to teens,” Edelson said. “But even the adult experience on TikTok appears to have much less explicit content than the teen experience on Reels.”

Meta META -1.41%decrease; red down pointing triangle dismissed the test findings as unrepresentative of teens’ overall experience.

“This was an artificial experiment that doesn’t match the reality of how teens use Instagram,” spokesman Andy Stone said.

Stone said the company’s efforts to prevent its systems from recommending inappropriate content to minors are ongoing. “As part of our long-running work on youth issues, we established an effort to further reduce the volume of sensitive content teens might see on Instagram, and have meaningfully reduced these numbers in the past few months,” he said.

The bulk of the testing by Edelson and the Journal occurred from January through April. An additional test by the Journal in June found continuing problems. Within a half-hour of its creation, a new 13-year-old test account that watched only Instagram-recommended videos featuring women began being served video after video about anal sex.

Self-examination
Internal tests and analysis by Meta employees have identified similar problems, according to current and former staffers and documents reviewed by the Journal that are part of previously undisclosed company research into young teens’ harmful experiences on Instagram. In 2021, company safety staff ran tests similar to those of Edelson and the Journal, and came up with comparable results, former employees said.

A separate 2022 internal analysis reviewed by the Journal found that Meta has long known that Instagram shows more pornography, gore and hate speech to young users than to adults. Teens on Instagram reported exposure to bullying, violence and unwanted nudity at rates exceeding older users in company-run surveys, and the company’s statistics confirmed that the platform was disproportionately likely to serve children content that violated platform rules.

Teens saw three times as many prohibited posts containing nudity, 1.7 times as much violence and 4.1 times as much bullying content as users above the age of 30, according to the 2022 internal analysis. Meta’s automated efforts to prevent such content from being served to teens was often too weak to be effective, the document said.

The most effective way to prevent inappropriate content from being served to underage users would be to build an entirely separate recommendation system for teens, the document suggested. Meta hasn’t pursued that proposal.

Some senior executives, including Instagram head Adam Mosseri, have expressed concern about the disproportionate display of adult content and other violative material to children, according to company staffers.

The Reels algorithms work, in part, by detecting users’ interests based on what videos they linger on longer than others and recommending similar content.

Meta has policies governing such recommendation systems. Under its guidelines, sexually suggestive content isn’t supposed to be recommended to users of any age unless it is from accounts they have specifically chosen to follow.

According to Meta’s January announcement, teens under 16 aren’t supposed to be shown sexually explicit content at all.

In more than a dozen manual tests run by the Journal and Northeastern’s Edelson, the minor accounts didn’t follow anyone or search for anything, to avoid activity that might influence Instagram’s content recommendations.

As soon as they were established, the accounts started watching Reels. Initial clips featured traditional comedy, cars or stunts, as well as footage of people sustaining injuries. The test accounts scrolled past such videos.

They watched Instagram-recommended videos that featured imagery such as a woman dancing or posing in a manner that could be construed as sexually suggestive. They didn’t like, save or click on any videos.

After a few short sessions, Instagram largely stopped recommending the comedy and stunt videos and fed the test accounts a steady stream of videos in which women pantomimed sex acts, graphically described their anatomy or caressed themselves to music with provocative lyrics.

In one clip that Instagram recommended to a test account identified as 13 years old, an adult performer promised to send a picture of her “chest bags” via direct message to anyone who commented on her video. Another flashed her genitalia at the camera.

Additional sessions on subsequent days produced the same mix of sexual content, alongside ads from major brands.

How TikTok and Snapchat fare
The algorithms behind TikTok and Snapchat’s “Spotlight” video feature operate on principles similar to that of Reels.

They all are supposed to work by filtering through billions of video posts and culling those that flunk certain quality tests, are predicted to contain content deemed “non-recommendable,” or don’t make sense given a user’s language, age or geography. The systems then make personalized recommendations from among the remaining videos based on predicted likelihood that a user will watch.

Despite their systems’ similar mechanics, neither TikTok nor Snapchat recommended the sex-heavy video feeds to freshly created teen accounts that Meta did, tests by the Journal and Edelson found.

On TikTok, new test accounts with adult ages that watched racy videos to completion began receiving more of that content. But new teen test accounts that behaved identically virtually never saw such material—even when a test minor account actively searched for, followed and liked videos of adult sex-content creators.

A TikTok engineer credited the differentiation both to stricter content standards for underage users and a higher tolerance for false positives when restricting recommendations.

“We err on the side of caution,” a TikTok spokesman said, adding that teens have access to a more limited pool of content.

In Edelson’s tests on Instagram, both the adult and teen test accounts continued to see videos from adult content creators at similar rates, suggesting far less differentiation. In some instances, Instagram recommended that teen accounts watch videos that the platform had already labeled as “disturbing.”

Meta said that, by definition, content labeled “disturbing” and hidden behind a warning screen shouldn’t be shown to children. Stone attributed the result to an error, and said Meta has developed more than 50 tools and resources to help support teens and their parents on its platforms.

Internal debate
Meta officials have debated how to address the level of display of age-inappropriate content for children. In a meeting late last year, top safety staffers discussed whether it would be sufficient to reduce the frequency of minors’ seeing prohibited content to the level that adults see.

Mosseri, the Instagram head, said at the meeting that reaching parity wouldn’t be adequate given Meta’s public statements regarding teen safety on its platforms, according to people familiar with his comments. That meeting set the stage for Meta’s January announcement that it would automatically default teens into its most restrictive content settings to refrain from recommending sexually suggestive or otherwise problematic content.

The success of that effort remains to be seen.

Senior Meta attorneys, including general counsel Jennifer Newstead, also began in the second half of last year making the case to the company’s top leadership that child-safety issues on Facebook and Instagram posed underappreciated legal and regulatory risks, according to current and former Meta child-safety staffers.

The staffers said that Meta recently has expanded its investments in child-safety work following years of tight budgets, intensifying scrutiny of its efforts by government officials and recommendations from its legal department.

WSJ : Tate & Lyle to Buy CP Kelco for $1.8 Billion in Push to Cash in on Health

Tate & Lyle to Buy CP Kelco for $1.8 Billion in Push to Cash in on Health Nutrition Trends
Tate & Lyle said the deal will speed up delivery of its aim to drive revenue growth toward the higher end of its 4% to 6% a year target range

Tate & Lyle TATE -4.98%decrease; red down pointing triangle agreed to buy nature-based ingredient provider CP Kelco for $1.8 billion as the U.K. group jockeys for position in a highly competitive market to meet growing demand for healthier and more sustainable food and drinks.

Consumers are asking more of food producers, fueling demand for healthier and sustainably sourced ingredients, transparent labeling and a commitment to fair labor practices and companies are diversifying their offering to satisfy that demand.

London-listed Tate & Lyle, which provides food-and-beverage ingredients, said it would acquire CP Kelco from J.M. Huber Corporation by paying $1.15 billion in cash and issuing new ordinary shares to Huber, which will become a long-term shareholder in Tate & Lyle.

CP Kelco provides pectin, specialty gums and other nature-based ingredients. The acquisition includes CP Kelco U.S., CP Kelco China, and Denmark-based CP Kelco ApS, together with their respective subsidiaries.

The deal will make it easier for Tate & Lyle to seize on trends toward more plant-based, clean-label and sustainable ingredients, said Tate & Lyle Chief Executive Nick Hampton.

“The growth potential of the proposed combined business is significant,” he said, adding that Tate & Lyle is fully aware of CP Kelco’s products since the companies have been collaborating for many years.

Tate & Lyle counts more than 3,300 employees across 121 countries. The group makes products that reduce sugar, calories and fat and add fiber and protein in beverages, dairy, bakery, snacks, soups, sauces and dressings.

From a financial standpoint, the deal will drive revenue growth toward the higher end of Tate & Lyle’s 4% to 6% per year target by the end of March 2028.

The acquisition is subject to regulatory approvals and is expected to be completed in the fourth quarter this year.