NEW YORK, May 23, 2024 /PRNewswire/ -- KPS Capital
Partners, LP ("KPS") announced today that it has entered into a
definitive purchase agreement with Tate & Lyle PLC (LSE:
TATE.L, "Tate & Lyle") to acquire Tate & Lyle's remaining
ownership interest of 49.7% in Primary Products Investments LLC
("Primient" or the "Company") for $350
million. Completion of the transaction is expected by 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. In connection
with the transaction, Primient and Tate & Lyle entered into
long-term agreements to provide security of supply to both Primient
and Tate & Lyle's retained businesses.
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."
Jim Stutelberg, Chief Executive
Officer of Primient, said, "We are excited for the future of
Primient and to strengthen our partnership with KPS. 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 modernization 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 $700 million 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 addition to the investments, Primient continues to
set itself apart in the corn wet milling industry as the only corn
wet miller to completely phase out coal, having transitioned all
facilities to more sustainable energy sources, and enabling
Primient to achieve its ambitious sustainability
commitments."
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.
About Primient
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. For more
information, visit www.primient.com.
About Tate & Lyle PLC
Tate & Lyle PLC is a
world leading provider of ingredient solutions for healthier food
and beverages. Tate & Lyle has an over 160-year history of
ingredient innovation, and partners with customers to provide
consumers with healthier and tastier choices when they eat and
drink. Through its expertise in sweetening, fortification, and
texture, Tate & Lyle develops ingredient solutions which reduce
sugar, calories and fat, add fiber and protein, and provide texture
and stability in categories including beverages, dairy, bakery,
soups, sauces and dressings. Tate & Lyle's purpose is
Transforming Lives through the Science of Food which is lived by
supporting healthy living, building thriving communities and caring
for the planet. For more information, visit
www.tateandlyle.com.
About KPS Capital Partners, LP
KPS, through its
affiliated management entities, is the manager of a family of
investment funds with approximately $21.4
billion of assets under management (as of December 31, 2023). For over three decades, the
Partners of KPS have worked exclusively to realize significant
capital appreciation by making controlling equity investments in
manufacturing and industrial companies across a diverse array of
industries, including basic materials, branded consumer, healthcare
and luxury products, automotive parts, capital equipment and
general manufacturing. KPS creates value for its investors by
working constructively with talented management teams to make
businesses better and generates investment returns by structurally
improving the strategic position, competitiveness and profitability
of its portfolio companies, rather than primarily relying on
financial leverage. The KPS Funds' portfolio companies currently
generate aggregate annual revenues of approximately $20.3 billion, operate 222 manufacturing
facilities in 26 countries, and have approximately 48,000
employees, directly and through joint ventures worldwide (as of
December 31, 2023). The KPS
investment strategy and portfolio companies are described in detail
at www.kpsfund.com.
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