Tate & Lyle PLC
Tate & Lyle announces that, following completion of consultation with the
European and local works councils and other employee representatives announced
on 9 May 2007, it has entered into an agreement with Syral SAS (a subsidiary of
Tereos of France) for the sale of its starch facilities in the UK, Belgium,
France, Spain and Italy (together 'the business'). The Belgian entity includes
the head office, shared service centre and single billing entity in Aalst,
Belgium ('SSC') which is excluded from the sale. The disposal is subject to
antitrust approval in Europe and completion is expected by 30 September 2007 at
the earliest.
On completion, Tate & Lyle will receive a consideration of EUR 310 million
(£209 million) subject to closing adjustments relating to cash, debt, working
capital and capital expenditure.
As set out in the Chairman's Annual General Meeting and Interim Management
Statement published today, proceeds of the disposal are intended to be utilised
as part of a share buy back programme.
In the year to 31 March 2007, the business had total sales of £520 million and a
profit before interest and exceptional items of £38 million. At 31 March 2007
the business had gross assets of £253 million and net operating assets of £184
million. The disposal is expected to result in an exceptional loss of
approximately £20 million after restructuring costs.
Iain Ferguson, Chief Executive, Tate & Lyle said, 'The sale of these starch
facilities marks another important step in focusing Tate & Lyle's business on
its value added strategy and reduces the impact of our exposure to volatile
markets and to the EU sugar regime. I would like to take this opportunity to
thank our employees at each of these facilities for their commitment and hard
work over the years and wish them every future success.'
Citi acted as financial adviser to Tate & Lyle PLC.
For more information contact Tate & Lyle PLC:
Mark Robinson, Director of Investor Relations
Tel: 020 7626 6525 or Mobile: 07793 515861
Ferne Hudson, Head of Media and Public Relations
Tel: 020 7626 6525 or Mobile: 07713 067433
About Tate & Lyle:
Tate & Lyle is a world leading manufacturer of renewable food and industrial
ingredients. It uses innovative technology to transform corn, wheat and sugar
into value-added ingredients for customers in the food, beverage,
pharmaceutical, cosmetic, paper, packaging and building industries. The Company
is a leader in cereal sweeteners and starches, sugar refining, value added food
and industrial ingredients, and citric acid. Tate & Lyle is the world number-one
in industrial starches and is the sole manufacturer of SPLENDA(R) Sucralose.
Headquartered in London, Tate & Lyle is listed on the London Stock Exchange
under the symbol TATE.L. In the US its ADRs trade under TATYY. The Company
operates more than 60 production facilities in 23 countries, throughout Europe,
the Americas and South East Asia. In the year to 31 March 2007, it employed
6,900 people in its subsidiaries with a further 2,300 employed in joint
ventures. Sales in the year to 31 March 2007 totalled £4.0 billion. Additional
information can be found on http://www.tateandlyle.com.
SPLENDA(R) is a trademark of McNeil Nutritionals, LLC
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