Tate & Lyle to Sell Ingredient Maker Primient

KPS Capital Partners has entered into a definitive purchase agreement with Tate & Lyle to acquire the company’s remaining ownership interest of 49.7% in Primary Products Investments LLC (Primient) for USD350m. Completion of the transaction is expected by the end of July 2024 and is subject to customary closing conditions and approvals.

Primient is a leading producer of food and industrial ingredients made from plant-based, renewable resources. Founded in 1906 as A.E. Staley Manufacturing Co., Primient has an over 100-year history of producing corn-derived products in the United States. The Company produces corn-derived products which are used in a wide variety of applications including carbonated beverages, confectionary products, packaging applications and animal feed for some of the world’s most recognizable food and beverage brands. Primient employs approximately 1,800 people across six manufacturing facilities in the United States and Brazil.

In April 2022, KPS acquired a controlling interest in Primient, Tate & Lyle’s Primary Products Business in North America and Latin America. 

Michael Psaros, Co-Founder and Co-Managing Partner of KPS, said, “Primient’s performance has exceeded our expectations, and this second investment represents KPS’ continued commitment to Primient, its customers and employees. Under our ownership, Primient will continue to modernize its operations, supporting growth initiatives and industry-leading sustainability practices. We intend to make further strategic investments to strengthen Primient’s role within the corn wet milling industry and the broader bioeconomy.” 

KPS expects to fund the investment through a combination of equity and debt financing. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to KPS and its affiliates. Evercore is acting as exclusive financial advisor to KPS. Debt financing to support KPS’ investment is being led by Barclays.