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."