KPS Capital Partners To Acquire Controlling Stake In Tate & Lyle's Primary Products Business In North America And Latin America
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.
Logo - https://mma.prnewswire.com/media/1023167/KPS_Logo.jpg
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
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