Tate & Lyle has announced a deal to sell its sugar business to American Sugar Refining for £211m in cash.
The group said the proceeds of the deal, which was widely expected, would be used to reduce its net debt levels.
It said the company would be “more focused and less volatile” as a result of the sale.
Tate & Lyle’s sugar business consists of refineries in the UK and Portugal, as well as the Golden Syrup factory in London.
The deal is expected to be completed within the next two months, the company said.
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Falling profits
TATE & LYLE HISTORY
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1878: Thames refinery opens in east London, after founder Henry Tate buys rights to the newly invented sugar cube
1883: Abram Lyle opens a refinery in nearby Plaistow
1885: Lyle’s puts golden syrup – made from by-products of sugar refining process – in green-and-gold tins. It proves a hit
1921: The two firms merge – refining about 50% of the country’s sugar between them
1935: Becomes a founder member of the first stock market – the FT-30 (the equivalent of today’s FTSE 100)
1949: Cartoon character Mr Cube created for campaign against nationalisation of UK sugar industry
1976: Discovers no-calorie sweeter sucrose
1988: Buys 90% of a US corn processor which makes starch products for food industry. Today two-thirds of T&L profits come from supplying sweeteners, starches and ethanol, with the rest from sugar and sucrose
2006: Golden Syrup named world’s oldest brand
2010: Sugars business sold to American Sugar Refining for £211m in cash
Tate & Lyle is famous in the UK for its sugar products, including its Golden Syrup. However, the firm is now set to concentrate on its industrial food ingredients division, which produces items used in processed foods such as soups and sauces.
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