Tate & Lyle announces “major business realignment”

restructuring-concept-illustration-workforce-movement-inside-organization-45304578Tate & Lyle has announced that it is exiting the substantial part of its European Bulk Ingredients business and re-structuring its SPLENDA Sucralose business to further focus on and strengthen its Speciality Food Ingredients business. The company has signed an agreement with ADM to re-align their Eaststarch corn wet milling joint venture in Europe.  Under the re-alignment, Tate & Lyle said it will:

 

Strengthen its Speciality Food Ingredients business by acquiring full ownership of the more speciality-focused plant in Slovakia

Substantially reduce its European Bulk Ingredients footprint by exiting the predominantly Bulk Ingredients plants in Bulgaria, Turkey and Hungary

Receive €240 million in cash on completion of the transaction

As a result of the re-alignment, Tate & Lyle will substantially exit from bulk sweeteners in Europe for good value and before a decision on potential future capital investment is required arising from the reform of the EU Sugar Regime in 2017.

 

Tate & Lyle’s plan to re-focus and re-structure the SPLENDA Sucralose business to maximise returns by pursuing a rigorous value-based strategy sees it materially lowering its future cost base by consolidating all SPLENDA Sucralose production into its facility in Alabama, US and closing the Singapore facility in Spring 2016.

 

“By re-aligning the Eaststarch joint venture we will focus in Europe on Speciality Food Ingredients, and our Bulk Ingredients will become a predominantly North American business with strong market positions and efficient, scale assets,” said Javed Ahmed, Chief Executive, Tate & Lyle. “We are re-structuring SPLENDA Sucralose as a more sustainable business. Our broader Speciality Food Ingredients business has an expanding global footprint and a steady flow of new products targeted at the higher growth health and wellness space, and is well-positioned for future growth.”

 

“Overall, the actions announced today streamline and further focus Tate & Lyle as it continues to transition to a global Speciality Food Ingredients business supported by cash generation from Bulk Ingredients.”