18th Jul 2007 07:00
Tate & Lyle announces that, following completion of consultation with theEuropean and local works councils and other employee representatives announcedon 9 May 2007, it has entered into an agreement with Syral SAS (a subsidiary ofTereos of France) for the sale of its starch facilities in the UK, Belgium,France, Spain and Italy (together "the business"). The Belgian entity includesthe head office, shared service centre and single billing entity in Aalst,Belgium ("SSC") which is excluded from the sale. The disposal is subject toantitrust approval in Europe and completion is expected by 30 September 2007 atthe earliest. On completion, Tate & Lyle will receive a consideration of EUR 310 million (£209 million) subject to closing adjustments relating to cash, debt, workingcapital and capital expenditure. As set out in the Chairman's Annual General Meeting and Interim ManagementStatement published today, proceeds of the disposal are intended to be utilisedas part of a share buy back programme. In the year to 31 March 2007, the business had total sales of £520 million and aprofit before interest and exceptional items of £38 million. At 31 March 2007the business had gross assets of £253 million and net operating assets of £184million. The disposal is expected to result in an exceptional loss ofapproximately £20 million after restructuring costs. Iain Ferguson, Chief Executive, Tate & Lyle said, 'The sale of these starchfacilities marks another important step in focusing Tate & Lyle's business onits value added strategy and reduces the impact of our exposure to volatilemarkets and to the EU sugar regime. I would like to take this opportunity tothank our employees at each of these facilities for their commitment and hardwork 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 RelationsTel: 020 7626 6525 or Mobile: 07793 515861 Ferne Hudson, Head of Media and Public RelationsTel: 020 7626 6525 or Mobile: 07713 067433 About Tate & Lyle: Tate & Lyle is a world leading manufacturer of renewable food and industrialingredients. It uses innovative technology to transform corn, wheat and sugarinto value-added ingredients for customers in the food, beverage,pharmaceutical, cosmetic, paper, packaging and building industries. The Companyis a leader in cereal sweeteners and starches, sugar refining, value added foodand industrial ingredients, and citric acid. Tate & Lyle is the world number-onein industrial starches and is the sole manufacturer of SPLENDA(R) Sucralose. Headquartered in London, Tate & Lyle is listed on the London Stock Exchangeunder the symbol TATE.L. In the US its ADRs trade under TATYY. The Companyoperates more than 60 production facilities in 23 countries, throughout Europe,the Americas and South East Asia. In the year to 31 March 2007, it employed6,900 people in its subsidiaries with a further 2,300 employed in jointventures. Sales in the year to 31 March 2007 totalled £4.0 billion. Additionalinformation can be found on http://www.tateandlyle.com. SPLENDA(R) is a trademark of McNeil Nutritionals, LLC Copyright Business Wire 2007Related Shares:
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