Ingredients firm Tate & Lyle is reportedly mulling a sale of the controlling interest in its Primary Products business. The unit manufactures corn sweeteners, dextrose, industrial starches, citric acid, ethanol, and other products. Reuters reported Monday that the company may shed the unit in a bid to hone its efforts on healthy food trends.
The London-based firm issued a statement Sunday confirming 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.”
Tate & Lyle said discussions with potential buyers are in an early stage and that a sale may not materialize.
“The board believes that if a transaction of this nature was completed it would enable Tate & Lyle and the new business to focus on their respective strategies and capital allocation priorities and create the opportunity for enhanced shareholder value,” the company wrote.
Last December, Tate & Lyle announced that it was expanding its portfolio of sweetener solutions through the acquisition of stevia products supplier Sweet Green Fields (SGF).