LONDON, ENGLAND — Tate & Lyle has agreed to sell its remaining 49.7% interest in Primary Products Investments LLC (Primient) for ₤279 million ($350 million) in cash to KPS Capital Partners, LP.

“With this sale, the transformation of Tate & Lyle into a fully focused specialty food and beverage solutions business is complete,” said Nick Hampton, chief executive, when the transaction was announced May 23. “We are now well-positioned to capture the significant growth opportunities ahead as we look to provide our customers with the solutions they need to meet growing consumer demand for healthier, tastier and more sustainable food and drink.”

Tate & Lyle will continue to focus on being a global leader in sweetening, mouthfeel and fortification benefits for food and beverages, according to the company.

Primient, based in Decatur, Illinois, US, makes corn-derived products used in applications such as carbonated beverages, confectionery products, packaging applications and animal feed, according to KPS. The company operates six manufacturing facilities in the United States and Brazil and employs about 1,800. In March, the company announced a five-year phased capital investment of over $700 million across the company’s operational footprint to modernize its corn wet milling production assets and processes.

Tate & Lyle in 2022 sold a controlling stake in a new company eventually named Primient to KPS. Primient comprised Tate & Lyle’s 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.

KPS manages KPS Funds, a family of investment funds with about $21.4 billion of assets under management as of Dec. 31, 2023. KPS expects to fund the investment in Primient through a combination of equity and debt financing.

“Primient’s performance has exceeded our expectations, and this second investment represents KPS’ continued commitment to Primient, its customers and employees,” said Michael Psaros, co-founder and co-managing partner of KPS. “Under our ownership, Primient will continue to modernize its operations, supporting growth initiatives and industry-leading sustainability practices. We intend to make further strategic investments to strengthen Primient’s role within the corn wet milling industry and the broader bioeconomy.”

The transaction, subject to customary closing conditions and approvals, is expected to close by the end of July, according to KPS. Tate & Lyle, after tax and transaction costs, expects net cash to be about £215 million ($270 million). The company’s board of directors plans to return the net cash to shareholders through an on-market share buyback program.