November 02nd 2015
ADM, Tate & Lyle complete re-alignment of Eaststarch joint venture.
Archer Daniels Midland Company (ADM) announced on Nov. 2 that it has completed the purchase of certain assets of Eaststarch C.V., ADM’s 50-50 joint venture with Tate & Lyle. The signing of the agreement to re-align Eaststarch was announced on April 21.
“This acquisition is an important expansion for ADM’s Corn business,” said Chris Cuddy, president of ADM’s Corn Processing business unit. “In order to continue to diversify our global footprint, our team has done a great job pursuing opportunities for profitable growth in key demand regions. We continue to enhance our capabilities to serve customers around the world, and to create value for our shareholders.”
ADM is now the owner of Eaststarch’s corn wet mills in Bulgaria and Turkey, and owns a 50% stake in a wet mill in Hungary. The Bulgaria, Turkey and Hungary facilities have a combined daily grind capacity of approximately 200,000 bushels. They produce primarily sweeteners and starches; the Hungary facility also produces ethanol for beverage, industrial and fuel uses.
Following completion, Tate & Lyle now has full ownership of the more specialty-focused plant in Slovakia and exited the predominantly bulk Ingredients plants in Bulgaria, Turkey and Hungary. Tate & Lyle has also received the cash consideration of €240 million. Customary working capital adjustments will be made in due course, Tate & Lyle said.
Source: http://www.adm.com/en-US/news/Pages/default.aspx and http://mediacentre.tateandlyle.com/LoginPage.aspx