Tate + Lyle: sells remaining interest in Primient JV

London / UK. (tl) Over the last six years, Tate + Lyle PLC has been executing a major strategic transformation to become a growth-focused speciality food and beverage solutions business. This transformation has included a much sharper focus on customers and categories, increased investments in innovation and solution selling capabilities, and significantly strengthening our sweetening, mouthfeel and fortification platforms through new product development and acquisitions.

A critical step in this journey was the sale, in April 2022, of a controlling interest in Primient, our primary products business in North America and Latin America, to KPS Capital Partners, LP (KPS). Today we are announcing an agreement to sell our remaining 49.7 percent interest in Primary Products Investments LLC to KPS. Transaction highlights:

The Transaction completes the staged exit from Primient well ahead of expiry of the original lock-up period of eight years which lasts until 1 April 2030. It also simplifies the business and fully focuses Tate + Lyle as a global, growth-focused speciality food and beverage solutions business, aligned to attractive structural and growing consumer trends for healthier, better tasting food and drink. The Transaction proceeds will be payable in cash at completion which is anticipated by the end of July 2024.

Use of proceeds: Consistent with the Board’s clear capital allocation policy and the strength of the Tate + Lyle balance sheet, the Board intends to return the net cash proceeds received from this Transaction (expected to be around USD 270 million (c.GBP 215 million)) to shareholders by way of an on-market share buyback programme. The buyback is expected to commence on completion of the Transaction.

Commenting on the sale, Nick Hampton, Chief Executive said: «I am delighted that we have reached agreement with KPS for the sale of our remaining stake in Primient well ahead of the original lock-up period. This is testament to the relationships we have built with KPS and Primient, and the robust framework for the separation of Primient established two years ago. With this sale, the transformation of Tate + Lyle into a fully-focused speciality food and beverage solutions business is complete. We are now well-positioned to capture the significant growth opportunities ahead as we look to provide our customers with the solutions they need to meet growing consumer demand for healthier, tastier and more sustainable food and drink.»

Michael Psaros, Co-Founder and Managing Partner of KPS Capital Partners, said: «We are thrilled to acquire Tate + Lyle’s ownership interest in Primient and, upon completion of the purchase, KPS will be sole-owner of the company. Primient’s performance has exceeded our expectations, and we are very confident in its future. We thank Tate + Lyle for its constructive partnership with KPS over the past two years. Primient looks forward to continuing its positive relationship with Tate + Lyle as a supplier under the long-term supply agreements.»