News
Tate & Lyle sells stake in ingredients producer for $350m
In a deal worth $350m, Tate & Lyle has agreed to sell to private equity firm KPS, which will own 100% of Primient once the deal is completed.
Based in Illinois, USA, Primient manufactures food and industrial ingredients made from plant-based and renewable resources. With more than 100 years of experience in the sector, its ingredients have applications across categories such as carbonated beverages, confectionary products, packaging applications and animal feed.
The firm, which employs approximately 1,800 people across six manufacturing facilities in the US and Brazil, was formerly known as Tate & Lyle Primary Products until KPS acquired a controlling stake in April 2022.
KPS and Tate & Lyle expect to finalise the transaction by the end of July 2024.
‘Primient performance exceeded expectations’
Commenting on the deal, KPS co-founder Michael Psaros 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 modernise 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.”
Meanwhile, Primient CEO Jim Stutelberg added: “Since KPS acquired Primient, I am incredibly proud of the tremendous progress we've made on our priorities of providing high-quality products and services to our customers and creating a safer workplace for our employees. Over the past two years, we have worked extensively with KPS to develop and execute our modernisation and growth strategy to empower Primient to meet customer needs today and in the future.
“With strong KPS support, we are executing on more than $700m in capital investments over the next five years to ensure the highest quality and most reliable production in the industry for decades to come. We believe the scale of our planned investments is unmatched in our industry and will position Primient to win new opportunities to serve the bioeconomy.”
In other news, Adnams has published its financial results for the 12 months to 31 December 2023, during which time it suffered a pre-tax loss of £4m.
