Tate & Lyle preparing for a breakup and sale of its primary products division – the biggest source of sales
Sweeteners giant Tate & Lyle is preparing for a breakup and sale.
The firm yesterday confirmed it is looking at the potential separation of its primary products division, the biggest source of sales, following a press report.
It sold its sugar business – which included Lyle’s Golden Syrup – in 2010.
Breakup: Tate & Lyle sold its sugar business – which included Lyle’s Golden Syrup – in 2010
The primary products division sells artificial sweeteners used in soft drinks and industrial starches and brought in revenues of £1.8billion last year.
It is thought to be worth more than £1.2billion. The food and beverage solutions division boasts annual sales of about £942m.
Tate confirmed it was ‘in the process of exploring the potential to separate its food and beverage solutions and primary products businesses through a sale of a controlling stake in its primary products business’.
It said the split would allow the businesses to better focus on their own priorities, adding that discussions with ‘potential new partners’ were at an early stage.