American Sugar Refining to Acquire Tate & Lyle's European Sugar Operations

YONKERS, New York, -- American Sugar Refining (ASR), North America's largest cane sugar refiner, signed an agreement to acquire Tate & Lyle PLC's European cane sugar operations.

Tate & Lyle is the leading cane sugar producer in the European Union. The acquisition of its refineries in London, England, and Lisbon, Portugal, increases ASR's total refining capacity to six million metric tons per year. The GBP211 million ($318 million) acquisition includes a license for use of the distinguished Tate & Lyle brand in connection with the sale of sugar.

"The acquisition of Tate & Lyle's European sugar operations is consistent with our strategic vision for expansion in the sugar refining sector," said Luis Fernandez, ASR Co-President. "Tate & Lyle is steeped in 130 years of tradition and consumer loyalty. We recognize the importance and history of the Tate & Lyle sugar brand and are proud to add it to our existing brand portfolio."

This acquisition marks the third large-scale transaction between the two companies. ASR purchased Tate & Lyle North American Sugars, Inc. (Domino Sugar) and its three refineries in 2001. More recently, ASR acquired Tate & Lyle Canada Ltd. (Redpath Sugar) in 2007, which included Canada's largest refinery. ASR's expertise lies in the operation of cane sugar refineries and the logistics of the related supply chain as well as the marketing of recognized retail sugar brands.

"Sugar is a global business," said Antonio L. Contreras, Jr., ASR Co-President. "This acquisition makes perfect sense for ASR. We're sugar people who are committed to and understand the sugar business. The European acquisition in many ways mirrors our North American operations and will complement our company."

Across North America, ASR owns and operates six cane sugar refineries, located in Yonkers, New York; Baltimore, Maryland; Chalmette, Louisiana; Crockett, California; Toronto, Canada; and Veracruz, Mexico. The company markets its industrial, consumer and specialty products through Domino Foods, Inc., with a brand portfolio of Domino(R), C&H(R), Florida Crystals(R) and Redpath(R).

ASR is owned by Florida Crystals Corporation, a Fanjul Corp. company, of West Palm Beach, Florida, led by Alfonso Fanjul, Jr., Chairman & CEO, and J. Pepe Fanjul, Vice Chairman, President & COO, and Sugar Cane Growers Cooperative of Belle Glade, Florida led by George H. Wedgworth, Chairman of the Board and CEO.

About American Sugar Refining, Inc.

American Sugar Refining, headquartered in Yonkers, NY, is led by Luis J. Fernandez, co-president, and Antonio L. Contreras, Jr., co-president. The company owns six sugar refineries as well as specialty sugar production facilities and a strategic warehousing and distribution system that allows seamless production and delivery of its products to customers across North America.

About Florida Crystals Corporation

Florida Crystals, a Fanjul Corp. company headquartered in West Palm Beach, Fla., is led by Alfonso Fanjul, Jr., Chairman & CEO, and J. Pepe Fanjul, Vice Chairman, President & COO, whose family has been leaders in the sugar industry for five generations. Florida Crystals is the only producer of certified organic sugar grown and harvested in the United States. In Florida, the company owns 155,000 acres of land, two sugar mills, a sugar refinery, a packaging and distribution center, a rice mill and the largest biomass renewable power plant in North America. Another Fanjul company, Central Romana Corporation, owns 240,000 acres, a sugar mill, refinery, deep sea port, marina, international airport and the Casa de Campo resort in the Dominican Republic as well as a furfural plant in Belgium. This latest acquisition would further solidify Florida Crystals Corporation and Fanjul Corp. as leaders in the sugar business.

About Sugar Cane Growers Cooperative

Sugar Cane Growers Cooperative of Florida, headquartered in Belle Glade, Fla., is led by George H. Wedgworth, Chairman of the Board and CEO. The Cooperative is comprised of 46 grower-members who grow sugarcane on approximately 65,000 acres of land. The primary functions of the Cooperative are the harvesting, transporting, and processing of sugarcane and the marketing of raw sugar through American Sugar Refining.

source: sys-con