12 July 2021 - Tate & Lyle will be selling a controlling stake in its Primary Products business in North America and Latin America and its interests in the Almidones Mexicanos S.A de C.V and DuPont Tate & Lyle Bio-Products Company to KPS Capital Partners through a newly formed company ("NewCo"), for $1.7 billion, KPS has announced.
The Primary Products business includes Tate & Lyle's animal nutrition products such as corn gluten meal, corn gluten feed, corn germ and concentrated corn steep liquor, as well as starch. With approximately 1,700 employees across six manufacturing facilities in the US and Brazil, the business generates annual revenue of approximately $2.3 billion.
KPS and Tate & Lyle, through affiliates, will each own approximately 50% of NewCo with KPS having Board of Directors and operational control.
Nick Hampton, CEO of Tate & Lyle, said: "We have been very impressed with KPS and are excited to partner with them in the next phase of the development of the Primary Products Business. KPS has proven expertise in managing and creating value in large manufacturing businesses, and we look forward to working with them under the long-term agreements we have established to provide supply security and economic protection to both the Primary Products Business and Tate & Lyle's retained businesses."
The deal is expected to be completed in Q1 2022.
