Following the adoption of the EU’s new sugar regime, Tate & Lyle has evaluated its plans for the company’s Food & Industrial Ingredients, Europe, business and has concluded that ownership no longer an essential element of its strategy, which is to increase the company’s focus on value added products.
Announcing the decision, the company said that it believes the best interest of the business and its employees would be served by the transfer of part or all of the business to an owner whose objectives and strategy are more closely aligned with the business. Tate & Lyle is therefore exploring the possibility of the full or partial sale of the unit.
“The decision to explore a full or partial disposal of Food & Industrial Ingredients, Europe is in response to the consequences of far reaching reform to the EU sugar regime and builds on the recently announced consultation on the surrender of quota in our Eastern Sugar joint venture. Today’s announcement reflects our strategic commitment to focus on growing our value added ingredients business,” Iain Ferguson, chief executive of Tate & Lyle said.
Tate & Lyle said that it will continue to develop its European value added food business through its Global Food Ingredients Group. The company will continue to attempt to expand its value added interests through further acquisition of bolt-on ingredients companies.