Tate & Lyle in talks to sell primary products business
26 Apr 2021 --- Tate & Lyle has confirmed that it is in the process of exploring the potential to separate its Food & Beverage Solutions and Primary Products businesses, through a sale of a controlling stake in its Primary Products business to a new long-term financial partner.
Claire-Marie O’Grady, company secretary, made this recent announcement on behalf of Tate & Lyle. Shares in the company rose 6 percent following the announcement, bringing Tate & Lyle up to “top riser” status on the FTSE 250.
Mulling a break up
“Tate & Lyle continues to successfully execute its strategy and remains confident in the future growth prospects of the company,” the ingredients supplier states.
“However, the Board believes that if a transaction of this nature was completed, it 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.”
Discussions with potential new partners in the Primary Products business are at an early stage and therefore there can be no certainty that a transaction will be concluded, the company notes.
“A further announcement will be made as and when appropriate,” it highlights.
Tate & Lyle developments
Tate & Lyle recently acquired Sweet Green Fields (SGF), a global stevia solutions business. The deal simplifies the existing relationship of both companies by creating a fully integrated supply chain and commercial organization.
In moves to educate food technicians on formulation strategies, the supplier launched its Stabiliser University, a new online modular course designed to help formulators and food scientists solve “even the toughest stabilizer formulation challenges.”
Similarly, the company unveiled Fibre University as an online modular course designed to help formulators and food scientists tackle fiber formulation challenges in a time when most people are not getting enough fiber in their diets.
Tate & Lyle also recently launched its “Collaborate at Home Kitchen,” a digital engagement hub where food and beverage manufacturers can explore trends, science and solutions that power modern consumer choices.
The hub, which will be continuously updated with new information and insights, guides users through a modern virtual kitchen where they can click on various food and beverage hotspots to get a taste of Tate & Lyle’s thought leadership and category solutions.
FoodIngredientsFirst has reached out to the supplier for further comment.
Edited by Benjamin Ferrer
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