Tate & Lyle agrees sale of Canadian sugar refining business

| Filed in:
Tate & Lyle PLC (“Tate & Lyle”) announces that it has signed an agreement for the sale of Tate & Lyle Canada Ltd (“Redpath”) to American Sugar Refining, Inc. (“American Sugar”). Redpath operates a cane sugar refinery in Toronto and a packing operation in Niagara Falls, Canada. On completion, Tate & Lyle will receive a net consideration of £132 million (C$299 million) subject to closing adjustments relating to working capital. The consideration will be used to reduce Group debt. The sale of Redpath is conditional upon regulatory approvals covering the Canadian competition bureau (anti-trust), foreign investment (Investment Canada Act) and taxation. These approvals and completion are expected within the next 90 days. In the year to 31 March 2006, Redpath had total sales of £177 million and a profit before interest and exceptional items of £18 million. After adjusting for the mark-to-market gain on inventory and allocated costs, the underlying profit contribution to Tate & Lyle was also £18 million. At 30 September 2006 Redpath had gross assets of £110 million and net operating assets of £84 million. Iain Ferguson, Chief Executive, Tate & Lyle said, “The sale of Redpath marks another important step in focusing Tate & Lyle’s business on its value added strategy. I would like to take this opportunity to thank our employees at Redpath for their commitment and hard work over the years and wish them every future success.” Credit Suisse acted as exclusive financial adviser to Tate & Lyle.

About Tate & Lyle: 
Tate & Lyle is a global provider of solutions and ingredients for food, beverage and industrial markets.

Tate & Lyle operates through two global divisions, Food & Beverage Solutions and Primary Products, supported by the Innovation and Commercial Development and Global Operations teams. Food & Beverage Solutions is focused on growth by building leading positions globally in the categories of beverages, dairy, and soups, sauces and dressings. Primary Products is focused on delivering steady earnings and generating cash.

Food & Beverage Solutions consists of: Texturants, including speciality starches; Sweeteners, including low- and no-calorie sweeteners; and a Health and Wellness portfolio comprising mainly speciality fibres; and Stabilisers and Functional Systems, which are bespoke ingredient blends that ensure foods retain their structure.

Primary Products consists of high-volume sweeteners, industrial starches and fermentation products (primarily acidulants).  It also sells co-products from the corn milling process as animal nutrition.

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 2019, Tate & Lyle sales totalled £2.8 billion. For more information, please visit http://www.tateandlyle.com or follow Tate & Lyle on Twitter or Linkedin.