Tate & Lyle has sold its sugar business to American Sugar Refining to help pay off debts.

British ingredients company Tate & Lyle has announced that it is to sell its EU sugar refining operations to American Sugar Refining for £211 million payable in cash.

The deal announced today (1 July) will see Tate & Lyle, manufacturer of Splenda and Golden Syrup, handing over its sugar business to the American company within the next two months.

The proceeds from the sale will be used to reduce Tate & Lyle’s net debt levels. At the end of March, the firm’s net debt stood at £814m.

Tate & Lyle stated on 27 May that it intended to “focus, fix and grow” its business. Today’s deal is seen as a step towards reaching its aim of a more streamlined business plan.

The company hopes the sale “will result in a more focused, less volatile business, and solid platform to deliver sustainable long-term growth in Speciality Food Ingredients.” Tate & Lyle also produces branded industrial ingredients such as Bio-PDO and Ethylex as well as staple ingredients such as ethanol, citric acid and basic starches.

Since two rival companies merged in 1921 to create Tate & Lyle, sugar production has been at the core of its business. Today the company operates primarily in corn wet milling, sugar refining and high-intensity sweeteners. 

Javed Ahmed, Chief Executive of Tate & Lyle, said: “Sugar refining has enjoyed a long and proud history within Tate & Lyle, but we believe the interests of this business and its employees are now best served by being part of a company for whom sugar refining is core.”

Tate & Lyle’s sugar business consists of refineries in the UK and Portugal, and the company’s Golden Syrup factory in London.