Tate & Lyle Forms Joint Venture in Italy
Tate & Lyle will hold 35% of the joint venture, for which it will invest €2.8 million, with Eridania holding the remaining 65%. The net assets of Eridania Tate & Lyle are €5 million. The joint venture will operate from 1 April 2007.
30/03/07 Tate & Lyle has formed a joint venture with Eridania Sadam (Eridania), the Italian sugar producer. The joint venture, “Eridania Tate & Lyle”, will be exclusively responsible for the marketing and sales of all sugar products from the two parent companies into the Italian market. Tate & Lyle will hold 35% of the joint venture, for which it will invest £2 million (€2.8 million), with Eridania holding the remaining 65%. The net assets of Eridania Tate & Lyle are €5 million. The joint venture will operate commercially with effect from 1 April 2007.
Tate & Lyle has a long history of supplying the Italian market and has significant relationships with major European businesses in Italy. Eridania is a beet sugar manufacturer and is the market leader in the Italian sugar sector. Eridania recently surrendered 50% of their EU sugar quota and Tate & Lyle and Eridania will both supply sugar to the joint venture to satisfy Italian market demand.
Ian Bacon, Chief Executive, Sugars, Europe, Tate & Lyle said, “We are committed to investing in the long term success of our European cane sugar business. This joint venture is an important step in our strategy to develop new markets following the reform of European sugar regime. I look forward to the joint development of both retail and industrial sales in this market.”
Massimo Maccaferri, President of Eridania Sadam and Eridania Tate & Lyle said “Eridania Tate & Lyle is a joint venture between two important European sugar producers with different competences, and will give a new boost in terms of competitiveness to the Italian sugar market. Eridania Tate & Lyle will plan a new logistic/distribution network and extend its product portfolio range, adding new value to the sugar category.”
