Thu. Aug 5th, 2021

London listed Tate & & Lyle have agreed to offer a managing stake in its primary items unit for $1.3 bn to United States private equity company KPS Capital Partners.
Under the terms of the deal revealed Monday, a brand-new company will be established owned 50pc by both celebrations, with the private equity firm having board and functional control.
Tate & & Lyle said today that the “transformational move” re-positions Tate & & Lyle as a global food and beverage options organization focused on quicker growing speciality markets, such as the growing international need for food and drinks that are lower in sugar, calories and fat, and consist of included fibre
” With the pandemic accelerating the pattern towards healthier food, now is the right time to focus our organization on recording this development,” ceo Nick Hampton stated.
The company added that sale likewise “significantly reduces direct exposure to commodities markets and bulk active ingredients in North America.”
The business means to return $500m to shareholders by special dividend following the offer, and the rest of the profits will be utilized to enhance the balance sheet and invest to accelerate development.
The transaction is anticipated to close in the first quarter of next year. It includes the primary products organization in North America and Latin America and some interests in various joint ventures. The new business, which has signed a 20-year supply agreement with Tate & & Lyle, will have a business value of $1.7 bn.
Shares rose 1.65 pc in early trading..

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