Investment in European Food Ingredient Group
Tate & Lyle PLC
16 April 2007 - Tate & Lyle PLC
Tate & Lyle Announces Investment in European Food Ingredient Group
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 (EUR 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 EUR 102 million and profit before interest, tax,
exceptional items and amortisation of EUR 10 million on net assets of EUR 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(R)
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.
(1) This information has been prepared on a proforma basis under German GAAP and
is unaudited.
Notes to Editors
Tate & Lyle recently announced a EUR 4 million investment to create a new Health
and Wellness centre in Lille. The centre, due to open in September 2007, will
include laboratories and pilot plant facilities for customers. It will focus on
developing new ingredients in the field of wellness and nutrition, catering for
beverage, dairy, bakery, and convenience food.
CONTACTS
Mark Robinson, Director of Investor Relations
Tel: +44(0)20 7626 6525 or Mobile: +44(0)7793 515861
Ferne Hudson, Head of Media and Public Relations
Tel: +44(0)20 7626 6525 or Mobile: +44(0)7713 067433
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(R)
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.
SPLENDA(R) is a trademark of McNeil Nutritionals, LLC
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