Tate & Lyle Reports Exit From Part Of European Bulk Ingredients Business

(RTTNews) - Tate & Lyle Plc. (TATE.L, TATYY.PK) Tuesday reported exit from the substantial part of its European Bulk Ingredients business and the re-structuring of its SPLENDA Sucralose business to further focus on and strengthen Speciality Food Ingredients.

The company has signed an agreement with Archer Daniels Midland (ADM) to re-align their Eaststarch corn wet milling joint venture in Europe. Eaststarch C.V. is ADM's 50-50 joint venture with Tate & Lyle.

ADM will take full ownership of corn wet mills in Bulgaria and Turkey, and will own a 50 percent stake in a wet mill in Hungary. Tate & Lyle will receive a cash consideration of 240 million euros.

Tate & Lyle will acquire full ownership of the more speciality-focused plant in Slovakia.

For SPLENDA, future cost base is expected to be materially lower by consolidating all SPLENDA Sucralose production into the facility in Alabama, U.S. and closing the Singapore facility in Spring 2016.

SPLENDA Sucralose business is expected to be around breakeven in the year ending March 31, 2016 and to return to modest profitability in the year ending March 31, 2017.

Further, the company said that supported by the confidence it has in the strategy of the business, the Board intends to recommend an unchanged final dividend for the year of 19.8 pence to make a total for the year of 28.0 pence, an increase of 1.4 percent.

The Board intends to maintain the total dividend payment at 28.0 pence for the year ending March 31, 2016.