PR90567

NEW YORK, July 12, 2021 /PRNewswire=KYODO JBN/ --

  -- New Company Will Be A Leading Manufacturer Of Plant-Based Products For The

     Food And Industrial Markets

  -- Company To Focus On Growth And Sustainability

  -- Tate & Lyle PLC To Retain Approximately 50% Ownership Interest

KPS Capital Partners, LP ("KPS") announced today that it has entered into a

definitive purchase agreement with Tate & Lyle PLC ("Tate & Lyle") (LSE:

TATE.L) 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

(collectively, the "Primary Products Business" or the "Company"), through a

newly formed company ("NewCo"), for an enterprise value of $1.7 billion. KPS

and Tate & Lyle, through affiliates, will each own approximately 50% of NewCo

with KPS having Board of Directors and operational control. Completion of the

transaction is expected in the first quarter of 2022 and is subject to

customary closing conditions and approvals.

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The Primary Products Business is a leading provider of nutritive sweeteners,

industrial starches, acidulants and other corn-derived products in North

America and Brazil. Founded in 1906 as A.E. Staley Manufacturing Co., the

Primary Products Business has an over 100-year history of producing

corn-derived products in the United States. The Company produces corn-derived

products for a diverse set of end-uses including carbonated beverages,

confectionery products, packaging applications and animal feed, among others,

and is proud to serve some of the world's most recognizable food and beverage

brands. With approximately 1,700 employees across six manufacturing facilities

in the United States and Brazil, the Primary Products Business generates annual

revenue of approximately $2.3 billion.

Michael Psaros, Co-Founder and Co-Managing Partner of KPS, said, "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.

"Our investment in NewCo will create a leading, independent and focused

manufacturer of critical corn- derived ingredients for both food and industrial

markets.  The size and scale of NewCo, and the tremendous growth opportunities

made available by serving as a critical supplier to the world's preeminent

food, beverage and industrial companies, forms the foundation of a tremendous

investment platform.  We will leverage our successful, multi-decade experience

of investing in process industries, our commitment to manufacturing excellence

and global network to drive increases in revenues, productivity and

profitability.

We intend to work closely with the management team of the Primary Products

Business to accelerate growth opportunities by making substantial investments

in NewCo's 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, Chief Executive Officer of Tate & Lyle, said, "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."

Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to KPS

and its affiliates. Barclays is acting as financial advisor to KPS. Debt

financing to support the transaction is being led by Barclays, BNP Paribas,

Goldman Sachs & Co. LLC, Rabobank and Wells Fargo.

About The Primary Products Business

The Primary Products Business is a leading provider of nutritive sweeteners,

industrial starches, acidulants and other corn-derived products in North

America and Brazil.  Founded in 1906 as A.E. Staley Manufacturing Co., the

Primary Products Business has an over 100-year history of producing

corn-derived products in the United States.  The Company produces corn-derived

products for a diverse set of end-uses including carbonated beverages,

confectionary products, packaging applications and animal feed, among others,

and is proud to serve some of the world's most recognizable food and beverage

brands. With approximately 1,700 employees across six manufacturing facilities

in the United States and Brazil, the Primary Products Business generates annual

revenue of approximately $2.3 billion.

About Tate & Lyle PLC

Tate & Lyle PLC is a leading global provider of food and beverage ingredients

and solutions.  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,

mouthfeel and fiber fortification, Tate & Lyle's Food & Beverage Solutions

business develops solutions which reduce sugar, calories and fat, add fiber and

provide texture and stability in categories including beverages, dairy, bakery,

soups, sauces and dressings.  Tate & Lyle's purpose is Improving Lives for

Generations 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 the KPS

Special Situations Funds, a family of investment funds with approximately $12.8

billion of assets under management (as of March 31, 2021). For nearly 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 $13.5 billion, operate 156 manufacturing facilities in 23

countries, and have approximately 40,000 employees, directly and through joint

ventures worldwide (as of March 31, 2021, pro forma for recent acquisitions).  

The KPS investment strategy and portfolio companies are described in detail at

www.kpsfund.com.

SOURCE: KPS Capital Partners, LP

CONTACT:  Business Inquiries: KPS - 212.338.5100; Media Relations: Prosek

Partners - Phil Walters, + 44 777 333 1589 or pro-kps@prosek.com