Tate & Lyle confirms plans to sell Primary Products unit

Tate & Lyle has confirmed its intentions to sell a controlling stake in its Primary Products unit to a new long-term financial partner, as it looks to focus on its Food and Beverage Solutions arm.

Tate & Lyle’s Primary Products business manufactures nutritive sweeteners, industrial starches used in paper and packaging, as well as acidulants and products used for animal nutrition.

Through the divestiture, the company looks to focus on supporting healthy living through its Food & Beverage Solutions business – which develops ingredient solutions to help companies reduce sugar, calories and fat, as well as add fibre and provide texture and stabilities in a variety of applications including dairy, beverages, bakery products, soups, sauces and dressings.

Last year, Tate & Lyle entered into agreements to acquire Sweet Green Fields and Chaodee Modified Starch, in an effort to bring better tasting and healthier foods to consumers.

According to the official statement, the transaction “would enable Tate & Lyle and the new business to focus their respective strategies and capital allocation priorities and create the opportunity for enhanced shareholder value”.

Tate & Lyle says discussions with potential new partners are at an early stage, but there can be no certainty that a transaction will be completed.