New York — KPS Capital Partners, LP (KPS) 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. The $1.7 billion deal has KPS and Tate & Lyle, through affiliates, each owning approximately 50 percent the new company, KPS having Board of Directors and operational control. Completion of the transaction is expected in the first quarter of 2022.
Tate & Lyle’s Primary Products Business provides nutritive sweeteners, industrial starches, acidulants and other corn-derived products in North America and Brazil. The company produces corn-derived products for a diverse set of end-uses including confectionery and packaging applications. With approximately 1,700 employees across six manufacturing facilities in the United States and Brazil, the business generates annual revenue of approximately $2.3 billion.
Michael Psaros, co-founder and co-managing partner of KPS, says: “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.
“We intend to work closely with the management team of the Primary Products Business to accelerate growth opportunities by making substantial investments in assets and operations, while also pursuing synergistic add-on acquisitions. We will invest in research and development in close cooperation with customers to introduce new products and product categories, in order to capitalize on long-term trends such as the transition to a more plant-based diet by consumers worldwide.”
Nick Hampton, CEO of Tate & Lyle, says: “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.”