Tate & Lyle PLC (TATE.L, TATYY.PK), a leading supplier of food and beverage ingredients, announced on Thursday that it has signed an agreement to sell its remaining 49.7% stake in the joint venture Primary Products Investments LLC, also known as Primient, to KPS Capital Partners, LP for $350 million (approximately £279 million).
After accounting for taxes and transaction costs, the net cash proceeds are expected to be around $270 million (approximately £215 million).
The payment for this transaction will be made in cash upon completion, which is anticipated by the end of July 2024.
Tate & Lyle intends to return the proceeds from this sale to shareholders via a share buyback program, which will begin once the deal is finalized.
This latest transaction marks the completion of Tate & Lyle's phased exit from Primient, well ahead of the initial lock-up period that was set to expire on April 1, 2030.
In April 2022, Tate & Lyle sold a controlling interest in Primient, its primary products business in North America and Latin America, to KPS.
In total, Tate & Lyle's full exit from Primient, including the dividends received since the initial sale in April 2022, has generated cash proceeds exceeding $1.5 billion.
