UK food ingredients giant Tate & Lyle is reportedly set to announce the sale of its sugars business to American Sugar Refining.
Reports in the UK suggest a deal worth GBP200m (US$299m) could be unveiled tomorrow, although Tate & Lyle has yet to announce any transaction publicly.
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Tate & Lyle’s sugar division includes Lyle’s Golden Syrup – purported to be the world’s oldest brand – and a sale would see the company effectively sever its ties with the sector in which the group was founded.
Analysts have been unconvinced about the future of Tate & Lyle’s sugar business for some months.
In May, the company’s chief executive Javed Ahmed outlined his plans for the group, including greater focus on value-added food ingredients.
“There is a real need for making some clear choices and a real need for focus,” Ahmed told analysts. “We want to become the leading provider of speciality ingredients and food solutions worldwide.”
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By GlobalDataAhmed then insisted he was not planning to sell any parts of Tate & Lyle’s business but said the group was always looking to “maximise shareholder value”.
However, he said the group’s speciality ingredients business presented an opportunity for good long-term growth due to the increased demand for health and wellness products.
Ahmed also said there was scope for the group to expand its customers beyond its core client base of large food manufacturers and that the company would look to boost its presence in emerging markets.
