Tate & Lyle has confirmed plans to sell a controlling stake in its sweeteners and starches division.
The company intends to sell its Primary Products unit to a long-term financial partner and focus on the Food & Beverage Solutions side of the business.
The Primary Products division produces sweeteners such as sucralose and stevia, industrial starches used in the food and packaging industry mainly in North America, and products for the animal nutrition industry.
In a statement published on Tate & Lyle’s website, the company explains its future plans: ‘Tate & Lyle continues to successfully execute its strategy and remains confident in the future growth prospects of the company. 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.’
Tate & Lyle has also confirmed that plans to sell its Primary Products division is at an early stage and the company cannot currently confirm if and when the sale will go through.
According the The Guardian, the company’s shares rose by 6% after the announcement was made on Monday morning (26.04.2021), making Tate & Lyle one of the top risers in the FTSE 250.