Tate & Lyle, the global renewable ingredients company, today announced the signing of an agreement to acquire an 80% holding in German specialty food ingredients group G. C. Hahn & Co (“Hahn”) for a total cash consideration of £79 million (€116 million). The transaction is subject to German antitrust approval and is expected to be completed by 31 May 2007.
Hahn is privately owned and was founded in 1848. Its headquarters and primary operations are located in Lübeck, Germany. It also has production operations in the UK, USA and Australia, and sales offices in 22 countries. Hahn is a recognised leader in dairy stabiliser systems and works closely with customers across the world to develop customised ingredient solutions. Hahn has been a customer of Tate & Lyle for many years. In the year ended 31 December 2006 the company generated sales of €102 million and profit before interest, tax, exceptional items and amortisation of €10 million on net assets of €43 million.
“The combination of Hahn with Tate & Lyle’s existing products, systems and applications skills will provide our customers with a comprehensive texturant offering with particular expertise in the dairy and convenience food sectors”, said Iain Ferguson, Tate & Lyle’s Chief Executive.
“This investment complements our existing teams, in particular at Cesalpinia Food and Tate & Lyle Custom Ingredients, and will strengthen our European marketing presence, opening new opportunities for developing our SPLENDA® Sucralose business.”
The former owner will retain 20% of Hahn. The agreement includes options which provide for Tate & Lyle to acquire the outstanding shares in due course. In the meantime, Tate & Lyle will continue to have the support of the founding family in cementing the partnership between Tate & Lyle and Hahn commenced with this investment.
 This information has been prepared on a proforma basis under German GAAP and is unaudited.
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Director of Investor Relations
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About Tate & Lyle
Tate & Lyle is a world leading manufacturer of renewable food and industrial ingredients. It uses innovative technology to transform corn, wheat and sugar into value-added ingredients for customers in the food, beverage, pharmaceutical, cosmetic, paper, packaging and building industries. The Company is a leader in cereal sweeteners and starches, sugar refining, value added food and industrial ingredients, and citric acid. Tate & Lyle is the world number-one in industrial starches and is the sole manufacturer of SPLENDA® Sucralose.
Headquartered in London, Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. In the US its ADRs trade under TATYY. The Company operates more than 65 production facilities in 29 countries, throughout Europe, the Americas and South East Asia. It employs 7,000 people in its subsidiaries with a further 4,800 employed in joint ventures. Sales in the year to 31 March 2006 totalled £3.7 billion. Additional information can be found on http://www.tateandlyle.com.