Tate & Lyle PLC ("Tate & Lyle") announces that it has signed agreements for the sale of United Molasses Company, a Delaware Corporation, ("UMUS") and the business and assets of UM Canada ("UMC") to Westway Holdings Corporation. UMUS and UMC were part of the Group’s world-wide Animal Feed and Bulk Storage operation previously listed for disposal and includes all molasses and third party liquid storage terminals in the USA and Canada. The sale of UMUS is conditional only upon the assignment of certain property leases. The sale of UMC is subject to anti-trust approval in Canada. In the year to 31 March 2002 UMUS and UMC combined had total sales of £124 million and a profit before interest and exceptional items of £4 million.
Proceeds of the sales (after collection of receivables and subject to closing adjustments) are expected to total £29m and will be used to reduce Group debt.
The initial consideration for UMUS is US$13 million (£8 million) which has been received in cash and is subject to closing net asset adjustments. Tate & Lyle will retain and collect closing debtors. Debtors totalled US$12 million (£8 million) at 30 September 2002.
The initial consideration for UMC is CAD$27 million plus US$1 million (£12 million) payable in cash on completion and is subject to closing net asset adjustment. Tate & Lyle will retain and collect certain of the closing debtors. Retained debtors totalled CAD$3 million (£1 million) at 30 September 2002.
Simon Gifford, Group Finance Director said:
‘This disposal marks another step in focusing the Group through the disposal of non core or underperforming assets and product lines.’
The sale of UMUS is conditional only upon the assignment of certain property leases. The sale of UMC is subject to anti-trust approval in Canada. In the year to 31 March 2002 UMUS and UMC combined had total sales of £124 million and a profit before interest and exceptional items of £4 million.
Proceeds of the sales (after collection of receivables and subject to closing adjustments) are expected to total £29m and will be used to reduce Group debt.
The initial consideration for UMUS is US$13 million (£8 million) which has been received in cash and is subject to closing net asset adjustments. Tate & Lyle will retain and collect closing debtors. Debtors totalled US$12 million (£8 million) at 30 September 2002.
The initial consideration for UMC is CAD$27 million plus US$1 million (£12 million) payable in cash on completion and is subject to closing net asset adjustment. Tate & Lyle will retain and collect certain of the closing debtors. Retained debtors totalled CAD$3 million (£1 million) at 30 September 2002.
Simon Gifford, Group Finance Director said:
‘This disposal marks another step in focusing the Group through the disposal of non core or underperforming assets and product lines.’
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About Tate & Lyle:
Supported by our 160-year history of ingredient innovation, we partner with customers to provide consumers with healthier and tastier choices when they eat and drink. We are proud that millions of people around the world consume products containing our ingredients every day.
Through our expertise in sweetening, fortification, and texture, we develop ingredient solutions which reduce sugar, calories, and fat, add fibre and protein, and provide texture and stability in categories including beverages, dairy, bakery, snacks, soups, sauces, and dressings.
We have more than 3,500 employees working in around 57 locations across 39 countries. Science, Solutions, Society is our brand promise and how we will achieve our purpose of Transforming Lives Through the Science of Food. By living our purpose we believe we can successfully grow our business and have a positive impact on society. We live our purpose in three ways, by supporting healthy living, building thriving communities and caring for our planet.
Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2023, Tate & Lyle revenue from continuing operations totalled £1.75 billion. For more information, please visit https://www.tateandlyle.com or follow Tate & Lyle on Linkedin, X (Twitter), Facebook or YouTube.
