Tate & Lyle is poised for sale to a US firm
BRITISH company Tate & Lyle is expected to sell its historic sugars business to US rival American Sugar Refining for around £200m.
The deal, which is due to be announced officially today, is likely to cause anger over the
loss of yet another UK business – coming, as it does, after the sale of Cadbury to Kraft.
The sale would mark the first change of ownership for the brand – including the world’s oldest, Lyle’s golden syrup – since the firms were established around 130 years ago. A deal would affect workers at the two London plants, where there are 550 direct employees. Another sugar refinery in Lisbon, Portugal, would also be included in the deal.
The sale fits with business plans of Tate & Lyle chief executive Javed Ahmed, who took over from Iain Ferguson last October. He is keen to focus on higher-margin products, such as its industrial food ingredients business.
Last month Ahmed said Tate would be split into three global divisions: speciality food ingredients, including artificial sweeteners; bulk ingredients; and sugars. The idea was to use cash from the last two divisions to grow the first.
American Sugar Refining, North America’s largest cane sugar producer, bought Tate & Lyle’s Canadian sugar refining and packing operations in 2007, but this would be its first move into Europe.
Yesterday Tate & Lyle and American Sugar refused to comment.