Tate & Lyle inks $1.7bn deal with PE firm for commercial sweeteners stake

Jul 12, 2021 | News

Tate & Lyle said on Monday it agreed to sell a controlling stake in its commercial sweeteners business to a U.S. private equity firm, in a deal that values the new standalone unit at $1.7bn including debt.

One of the world’s biggest producers of sweeteners — Tate & Lyle — and KPS Capital Partners would each own 50% of the new company, it said, adding that the private equity firm will have operational and board control.

Following the split, Tate & Lyle will focus on its food and beverage business, while the new company on plant-based products for food and industrial markets.

Free Webinar: Personalizing One to Many: Investor Relations at Scale

Learn More
  • What are the best practices for investor relationships when the number of fund and LP’s increase
  • How has technology reshaped investor relationship management?
  • What are the most important factors for LP’s when deciding where to place their funds now and in the future?

The food and beverage ingredients maker also said it has 20-year long-term supply agreements with the new company and would still have control over the manufacturing facilities, which generated 75% of its revenue last financial year.

A special dividend of about 500 million pounds ($695.00 million) would be paid to Tate & Lyle shareholders upon completion of the deal, it said.

The new company would consist of its primary products business in the Americas that makes bulk sweeteners, industrial starches and animal nutrition, and an interest in its joint ventures Almex and Bio-PDO.

Source: Reuters

Can’t stop reading? Read more