Sucrogen, the Australian-based sugar subsidiary of Singapore-listed Wilmar International Limited, has been given approval to purchase Proserpine Sugar Mill by the mill’s creditors, Westpac Bank. Sucrogen’s offer comprised a headline price of A$120 million, plus a working capital adjustment, normal settlement adjustments, as well as absorption of the mill’s normal operating costs and certain critical capital expenditure incurred from 31 October 2011. Sucrogen CEO Ian Glasson said the creditors’... ...Read more »

The owners of United Biscuits are reportedly looking to auction the company’s biscuits division for around GBP1.5 billion (US$2.39 billion), after China’s Bright Food walked away from talks to acquire the whole company. According to a report in The Mail on Sunday, the move would put the division, which makes brands like McVitie’s and Penguin, up for sale at a value of around nine times last year’s profits – which worth 80% of United Biscuits’ total GBP223m profit. The... ...Read more »

CSR Limited announced today that it has successfully completed the sale of Sucrogen to Wilmar International for a total payment of $A1.843 billion. The underlying enterprise value of Sucrogen remains at A$1.75 billion with the increase accounted for in the Purchase Price Adjustment to reflect CSR’s funding of Sucrogen since 1 April 2010. “The transaction marks a significant milestone in the 155 year history of CSR,” said CSR Chairman, Dr Ian Blackburne. “The transaction completes the separation... ...Read more »

Federal Treasurer Wayne Swan yesterday announced the Foreign Investment Review Board’s approval of the sale of CSR Ltd’s sugar and renewable energy business, Sucrogen, to Singaporean food giant Wilmar International. “I have taken account of Wilmar’s ambitious growth plans for Sucrogen.  These include the expansion of the company’s Australian operations by providing better access for its sugar products to growth markets in Asia, and jointly developing refining facilities... ...Read more »

British-based baked goods and snacks giant United Biscuits, producer of McVities, Carr’s, Jaffa Cakes, McCoy’s and Phileas Fogg, is rumoured to be next for the hammer, with UK news outlets reporting that a sale is under consideration. Owners, private equity firms Blackstone Group LP and PAI Partners, could net as much as 2 billion pounds (A$3.4 billion) for the sale of the company they purchased in 2006, for 1.6 billion. There is also speculation that the biscuit and snack divisions of... ...Read more »

The award-winning Transport Hotel, home to one of Melbourne’s best restaurants – Taxi, is set to be sold by owners the Sovereign Hotel Group. The Group announced their intention to sell today, with the Transport Hotel – including Taxi Dining Room and Transit Cocktail Lounge – and Feddish Bar and Restaurant all set to have new owners. “The decision to capitalise on this investment will strategically position Sovereign Hotel Group to develop further growth opportunities... ...Read more »

Wine firm Constellation Brands has announced the completion of the sale of its Gaymer Cider Company business to C&C Group PLC of Dublin. The ASX and NYSE-listed company sold their UK cider business for a purchase price of £45 million (A$80m). “The company expects to use the proceeds from the sale to reduce borrowings,” they said in a statement a week after reporting a four per cent drop in third quarter sales.  Read More →

Proceeds from the sale of Nestlé’s remaining stake in Alcon to health-care giant Novartis are likely to be used for deleveraging, according to an industry analyst. The Swiss food giant announced overnight (Australian time) that pharmaceuticals group Novartis had exercised its call option to buy a 52% stake in Alcon for around US$28bn in cash. Novartis bought 25% of Alcon in April 2008 for $10.4bn and plans to buy the remaining 23% of the business, offering investors a 12% premium if they agree... ...Read more »

Sara Lee has announced a further step toward their plan to focus on food and beverage products with the sale of the air care business to consumer products giant Procter & Gamble. The binding offer of €320 million (A$524 million) was accepted earlier this month by Sara Lee as long as certain, unspecified conditions are met. In fiscal 2009, this business generated annual sales of approximately €260 million. “The proposed sale of our air care business is the next step in our plan to focus... ...Read more »

Lion Capital, a consumer-brands focussed private equity firm based in the UK, is looking to sell the Kettle Foods brand, according to reports. Reuters said sources close to the situation had informed them that Lion was looking for around US$700 million for the potato chip company. The private equity firm has reportedly enlisted the services of investment bank Rothschild to help sell Kettle, with PepsiCo’s Frito-Lay and pretzel maker Snyder’s listed by the Wall Street Journal as two of... ...Read more »