Louis Dreyfus sells another asset
U.S. Sugar has reached an agreement to buy the business and assets of its local rival Imperial Sugar from commodities trader Louis Dreyfus Company (LDC), Reuters writes.
As reported, Imperial Sugar operates a refinery at Port Wentworth in Savannah, Georgia, and a sugar transfer and liquification facility in Ludlow, Kentucky. It was bought by Louis Dreyfus in 2012 for USD 78 mln.
U.S. Sugar farms 200,000 ac (80,940 ha) of sugar cane and operates a large milling and refining installation in Clewiston, Florida.
"The company expects synergy gains from the combination with Imperial Sugar and looks to expand its share in the U.S. market of production and sales," the message reads.
Louis Dreyfus said the sale will allow it to concentrate on its global sugar trading business. The company recently announced another deal to sell a sugar production business.
No financial details were disclosed, Reuters marks, but U.S. Sugar said the transaction will be financed through committed debt financing provided by Wells Fargo Bank and PGIM Agricultural Finance. Wells Fargo Securities Llc is serving as the exclusive financial adviser to U.S. Sugar. The transaction is expected to be concluded later this year, following an antitrust review.
Previously reported that the energy company Raízen will incorporate the assets of Biosev, a Brazilian subsidiary of Louis Dreyfus Holding.
