The last six years have seen Tate & Lyle undergoing a major strategic transformation to develop a sharper focus on its offering as a speciality food and beverage solutions business.
This has included increased investments into innovation and solution selling capabilities and the strengthening of its sweetening, mouthfeel and fortification platforms through NPD and acquisitions.
Part of this journey was the sale, in April 2022, of a controlling interest in Primient, its primary products business in North America and Latin America.
The announcement to sell the remaining 49.7% interest in Primary Products Investments LLC to KPS was made public May 2024.
With the transaction now complete, Tate & Lyle has received cash proceeds of $350m (c.£279m); with net cash proceeds, after tax and transaction costs, expected to be around $270m (c.£215m).
The Board intends to return the net cash proceeds to shareholders by way of an on-market share buyback programme – a process already underway (as from 20 June 2024).
The transaction completes the staged exit from Primient ahead of the expiration of the original lock-up period of eight years, which lasts until 1 April 2030.
Commenting on the sale announcement back in May, Nick Hampton, Tate & Lyle chief executive said he was delighted to have reached an agreement with KPS 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,” he continued. “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.”
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