Tate & Lyle is expected to announce the sale of its historic sugars business to a US rival, Sky's City editor has learned.
Mark Kleinman said the firm is in advanced talks to sell the arm, which includes brands such as Lyle's Golden Syrup, to American Sugar Refining for around £200m.
He added that the City would view the move with some significance because it "would see another piece of Britain's industrial heritage transferred into overseas ownership".
Writing in his blog, Kleinman said: "The deal, which if completed would affect hundreds of British-based employees, would effectively sever Tate & Lyle's ties to its most famous business, which was founded more than 150 years ago."
Tate & Lyle is expected to present details of the deal to the Stock Exchange on Thursday, Kleinman added.
He explained that while most people know Tate & Lyle for its sugar products, its future growth is expected to come from its speciality food ingredients arm.
"At its annual results several weeks ago, Tate's newish chief executive Javed Ahmed outlined the company's plan to focus on its industrial food ingredients business, which already accounts for the majority of its annual sales and profit," Kleinman said in his blog.
"The sugar division, where margins have suffered because of a fall in the wholesale price of sugar in recent years, accounts for about £900m in sales but relatively modest profits."
Tate employs hundreds of people at the Thames Refinery at Silvertown in east London, which has been operating since 1878, as well as another plant in Lisbon.
Mark Kleinman said the firm is in advanced talks to sell the arm, which includes brands such as Lyle's Golden Syrup, to American Sugar Refining for around £200m.
He added that the City would view the move with some significance because it "would see another piece of Britain's industrial heritage transferred into overseas ownership".
Writing in his blog, Kleinman said: "The deal, which if completed would affect hundreds of British-based employees, would effectively sever Tate & Lyle's ties to its most famous business, which was founded more than 150 years ago."
Tate & Lyle is expected to present details of the deal to the Stock Exchange on Thursday, Kleinman added.
He explained that while most people know Tate & Lyle for its sugar products, its future growth is expected to come from its speciality food ingredients arm.
"At its annual results several weeks ago, Tate's newish chief executive Javed Ahmed outlined the company's plan to focus on its industrial food ingredients business, which already accounts for the majority of its annual sales and profit," Kleinman said in his blog.
"The sugar division, where margins have suffered because of a fall in the wholesale price of sugar in recent years, accounts for about £900m in sales but relatively modest profits."
Tate employs hundreds of people at the Thames Refinery at Silvertown in east London, which has been operating since 1878, as well as another plant in Lisbon.
Last edited: