KPS Capital Partners to Acquire Controlling Stake in Tate & Lyle’s North America And Latin America Business
KPS Capital Partners, LP announced it has entered into a definitive purchase agreement with Tate & Lyle PLC to acquire 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, LLC joint ventures, through a newly formed company, for an enterprise value of USD1.7bn. KPS and Tate & Lyle, through affiliates, will each own approximately 50% of the new company with KPS having Board of Directors and operational control. Completion of the transaction is expected in the first quarter of 2022 and is subject to customary closing conditions and approvals.
The Primary Products Business is a leading provider of nutritive sweeteners, industrial starches, acidulants and other corn-derived products in North America and Brazil. Founded in 1906 as A.E. Staley Manufacturing Co., the Primary Products Business has an over 100-year history of producing corn-derived products in the United States. The company produces corn-derived products for a diverse set of end-uses including carbonated beverages, confectionery products, packaging applications and animal feed, among others, and is proud to serve some of the world’s most recognizable food and beverage brands. With approximately 1,700 employees across six manufacturing facilities in the United States and Brazil, the Primary Products Business generates annual revenue of approximately USD2.3bn.
Michael Psaros, co-founder and co-managing partner of KPS, said, “KPS is excited to make a controlling investment in the Primary Products Business and is honored to partner with Tate & Lyle. KPS and Tate & Lyle have complete alignment of interests and have cemented a partnership based on shared values such as the safety of our employees and a demonstrated commitment to sustainability.
Nick Hampton, CEO of Tate & Lyle, added: “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.”