Ingredients giant Tate & Lyle (TATE) has announced major plans to realign the business to focus on the faster-growing and higher-margin speciality food ingredients market.
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As part of the new approach, Tate will sell the majority of its European Bulk Ingredients business, which it operates under a joint venture with US-listed Archer Daniels Midland (US:ADM), while strengthening the speciality food ingredients operation by acquiring full ownership of the more speciality-focused plant in Slovakia. The disposal should bring in €240m (£171m) in cash on completion, which could yield a net profit of £60m after exceptional charges.