KPS Capital Partners' $700M Bet on Primient: A Major Move in Plant-Based Ingredients

The Investment Signal That Matters

In a significant consolidation of its commitment to the plant-based ingredients space, KPS Capital Partners has announced plans to acquire full ownership of Primient, one of North America’s most established producers of corn-derived food and industrial ingredients. The deal, expected to close by late July 2024, marks KPS’ second major investment in the company—just two years after acquiring a controlling stake in what was then part of Tate & Lyle’s operations.

What’s Driving This Move?

The real story here isn’t just the ownership change—it’s the ambitious $700 million capital commitment over the next five years. Primient is betting big on modernizing its manufacturing infrastructure and positioning itself as the go-to player in the growing bioeconomy sector. This level of investment signals KPS’ confidence in the company’s trajectory and its ability to capture emerging opportunities in industrial biotechnology.

“Their belief in us has been foundational,” said Jim Stutelberg, Primient’s CEO, underlining how the private equity firm’s operational expertise and financial backing have transformed the company since 2022.

The Scale of the Operation

Primient operates with approximately 1,800 employees across six manufacturing facilities across the United States and Brazil. The company’s product portfolio—from sweeteners and starches to industrial applications—serves major global consumer brands. With over a century of heritage tracing back to A.E. Staley Manufacturing, Primient revenue streams now reflect a diversified supplier model serving beverages, confectionary, packaging, and animal nutrition sectors.

Why KPS Sees Long-Term Value

Michael Psaros, KPS’ Co-Founder and Co-Managing Partner, emphasized that Primient’s performance has “exceeded expectations.” The firm manages approximately $21.4 billion in assets globally and operates a diversified portfolio of 222 manufacturing facilities across 26 countries with roughly 48,000 employees. For KPS, Primient represents a strategic positioning within the corn wet milling industry and a broader play on the bioeconomy—where plant-based inputs are increasingly viewed as the infrastructure for tomorrow’s sustainable production.

The Bioeconomy Opportunity

The decision to take full ownership suggests KPS is doubling down on the conviction that companies positioned at the intersection of traditional commodity production and emerging biotechnology applications will capture significant value. Primient’s full-ownership transition creates the operational flexibility and long-term capital horizon needed to execute this transformation without quarterly earnings pressure.

This move reflects a broader trend: industrial ingredient producers with scale, reliability, and sustainability credentials are becoming increasingly valuable in a shifting global supply chain.