LONDON — Tate & Lyle PLC announced April 1 it had completed the sale of a controlling stake in a new company comprising its Primary Products business in North America and Latin America and its interests in Almidones Mexicanos SA de CV and DuPont Tate & Lyle Bio-Products Co., LLC joint ventures to KPS Capital Partners LP.

The new company previously was called NewCo and now will be called Primient. KPS holds a 50.1% interest in Primient and has board and operational control. Tate & Lyle holds a 49.9% interest in Primient.

“The completion of this transaction represents the start of a new and exciting chapter for our business,” said Nick Hampton, chief executive officer of London-based Tate & Lyle. “Tate & Lyle is now transformed into a purpose-led, growth-focused global food and beverage solutions business, serving faster growing specialty markets.”

KPS through its affiliated management entities manages KPS Special Situations Funds, a family of investment funds with about $13.1 billion of assets under management as of Dec. 31, 2021.

“Over the past several months KPS and Tate & Lyle have worked closely together to establish Primient as an independent enterprise,” said Michael Psaros, co-founder and managing partner of KPS Capital Partners. “Primient is now poised for success as a leading, independent and focused manufacturer of critical corn-derived ingredients for both food and industrial markets.”

Tate & Lyle entered into an agreement for the sale July 12, 2021. The transaction creates two standalone businesses: Tate & Lyle, a food and beverage business focused on specialty markets, and Primient, a business that focuses on plant-based products for the food and industrial markets.

“Over the last four years we have created a strong platform for growth,” Mr. Hampton said April 1. “As a more focused business we will enhance the way we serve our customers and accelerate growth through increased investment in R&D, innovation and solutions development.  The trend toward healthier food is accelerating, and with our leading positions in sweetening, mouthfeel and fortification, we are well-positioned to meet growing consumer demand for food and drink that is lower in sugar, calories and fat, and with added fiber.

“We thank the team at Primient for their outstanding contribution to Tate & Lyle and look forward to working closely with them in the future to ensure the success of both businesses.”

Tate & Lyle, as previously announced, intends to return about £500 million ($655 million) to ordinary shareholders through a special dividend with an associated share consolidation. Tate & Lyle’s shareholders will need to approve the special dividend and associated share consolidation.

Tate & Lyle also commented on the Russia-Ukraine war.

“The conflict in Ukraine is causing a significant escalation in raw material (including corn), energy and logistics costs globally, especially in Europe,” the company said. “We have committed agreements in place for key production inputs such as corn and energy covering the majority of the first half of the 2022 calendar year.  Input markets remain volatile, and we will continue to take actions to mitigate additional inflationary pressures, including supplementary price increases across our main markets.  Our focus is on maintaining continuity of supply and serving our customers.  

 “Guided by our purpose, we are also actively supporting humanitarian relief efforts for the Ukrainian people, in particular by supporting charities that are providing food, clothes and shelter to refugees arriving in the regions of Poland and Slovakia where we have operations.”

Tate & Lyle’s Feb. 11 update on its outlook for the fiscal year ended March 31 remains unchanged.