Tate and Lyle confirms sugar sale to American Sugar Refining
Tate & Lyle announced last night it has signed an agreement for the sale of its EU Sugar Refining operations to American Sugar Refining. The consideration is £211 million payable in cash.
On 27 May 2010, Tate & Lyle announced its clear intentions to focus, fix and grow its business. This sale is intended to create a more focused, less volatile business, and a solid platform to deliver sustainable long-term growth in Speciality Food Ingredients, supported by cash generated from Bulk Ingredients.
EUS consists of the cane sugar refineries in London, UK, and Lisbon, Portugal, the Lyle’s Golden Syrup factory in London, UK, the associated sugar and syrup brands and the Tate & Lyle Process Technology consulting business. In the year ended 31 March 2010, these businesses had external sales of £689 million.
The completion of the transaction, which is conditional upon anti-trust clearance in Portugal, is expected to occur in approximately two months.
Tate & Lyle has provided American Sugar Refining with a perpetual worldwide licence to use the Tate & Lyle brand in connection with the retail sale of sugar and in other limited circumstances.
Tate & Lyle also announced the launch of processes to sell the remaining businesses within the Sugars division, principally Molasses and Vietnamese sugar.
Javed Ahmed, Chief Executive of Tate & Lyle said: “Sugar refining has enjoyed a long and proud history within Tate & Lyle, but we believe the interests of this business and its employees are now best served by being part of a company for whom sugar refining is core. I sincerely thank our employees for their hard work and commitment over the years, and wish them every success in the future.
“Tate & Lyle’s clear priority is to grow its Speciality Food Ingredients business, supported by cash generated from Bulk Ingredients. This disposal will enable us to concentrate our resources on delivering our strategic objectives as we focus, fix and grow our business.”