25 October 2006 - Tate & Lyle announces that, following the EU’s adoption of a new regulatory regime for the sugar industry which took effect on 1 July 2006, Tate & Lyle has reviewed its plans for the future of its Food & Industrial Ingredients, Europe division (“TALFIIE” or “the business”) and has concluded that ownership of the business is no longer an essential element of its strategy to focus on value added ingredients.
Tate & Lyle is therefore exploring the possibility of the full or partial disposal of TALFIIE.
Tate & Lyle believes that the interests of TALFIIE and its employees may be best served by the transfer of all or part of the business to an owner whose objectives and strategy are more closely aligned with the business and its investment opportunities.
Tate & Lyle will continue to develop its value added food ingredients business in Europe through its Global Food Ingredients Group, which includes Cesalpinia Foods Srl. As previously advised, Tate & Lyle will continue to seek to supplement its value added business through the further acquisition of bolt-on ingredient companies.
Iain Ferguson, Chief Executive of Tate & Lyle said "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.”
Further announcements will be made as appropriate.
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 this website www.tateandlyle.com.
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